Will this be a new L/O, or have you already signed with your T/B and are going to help them obtain financing in four months? If they have paid you for a full year on time, just go to a mortgage broker to use a lender who will treat it as a refi.
[addsig]
LOK, Sorry for delay in responding...This is a tenant that has been in the home since last Oct. They signed a L/O with me back then.
How does it benefit the buyer by doing a refi ?
Thanks!
The buyer will be able to do a cash/out or debt consolidation refi. In other words, they can tap into the equity. I believe they can also take advantage of the tax breaks including writing the closing costs off.
The Buyers will not have a down payment requirement, so they will only have to satisfy your requirement (difference between your sale price and the percentage they can borrow--factoring in anyb rental credit and option consideration). You can choose to take a note in the form of a second mortgage for some of your equity (I would suggest a no interest/no payments note with a five-year balloon). If they sell and buy another house i 2-3 years, you get a call to come pick up your check. If they stay, in five years they must refinance to cash you out.
[addsig]
LOK,
So myself or the tenant can go to a lender or broker and seek a refi for them ( by me, I mean referring them to a lender or broker - which do you think would work best ? ). What do you think the lender or broker will require from me ?
Appreciate your patience on this matter !
Brokers have all sorts of programs, so talk to one for what they require. Universally, they will all require 12 canceled checks and a Lease Option Agreement.
[addsig]
Will this be a new L/O, or have you already signed with your T/B and are going to help them obtain financing in four months? If they have paid you for a full year on time, just go to a mortgage broker to use a lender who will treat it as a refi.
[addsig]
LOK, Sorry for delay in responding...This is a tenant that has been in the home since last Oct. They signed a L/O with me back then.
How does it benefit the buyer by doing a refi ?
Thanks!
The buyer will be able to do a cash/out or debt consolidation refi. In other words, they can tap into the equity. I believe they can also take advantage of the tax breaks including writing the closing costs off.
The Buyers will not have a down payment requirement, so they will only have to satisfy your requirement (difference between your sale price and the percentage they can borrow--factoring in anyb rental credit and option consideration). You can choose to take a note in the form of a second mortgage for some of your equity (I would suggest a no interest/no payments note with a five-year balloon). If they sell and buy another house i 2-3 years, you get a call to come pick up your check. If they stay, in five years they must refinance to cash you out.
[addsig]
LOK,
So myself or the tenant can go to a lender or broker and seek a refi for them ( by me, I mean referring them to a lender or broker - which do you think would work best ? ). What do you think the lender or broker will require from me ?
Appreciate your patience on this matter !
Brokers have all sorts of programs, so talk to one for what they require. Universally, they will all require 12 canceled checks and a Lease Option Agreement.
[addsig]