Lease Option Refinance Question
I have a client that wants to rent to own, lease option. My mortgage broker tells me that they cannot do it since the tenant is not on title unless we do an agreement of sale.
How do you all refinance your tenant buyers?
I am confused as to the exit strategy on qualifying the tenant buyer on the back end.
Any support would be so appreciated. Thank you!
I appreciate the knowledge and expertise in this forum and certainly could use some help on the structure and exit on this deal.
Here are the numbers, please tell me what you think I should do with this property.
I owe $375k Option ARM
amortized monthly payment of $2300 + $600 maintenance fees
Property is slightly over leveraged. I offered it lease option for $377k
I have an interested woman that is asking me to run scenarios if she put $10k and another if she put $20k down.
I was thinking if she put $10k down, her monthly would be $3500 ($2900 rent + $600 maintenance) and having $400/mo go toward the purchase along with the initial $10k
Or, if she puts $20k down $3000/mo ($2400 rent + $600 maintenance) and having $100/mo toward the purchase.
I am totally confused as to what to do for the back end of this now. Maybe I should convert it to a standard owner finance for 2 years, and have her get new financing at that point?
But what is the advantage to her? I should probably put her in a credit repair program of sorts.
What should I do with her option fee? Apply it directly to the principal on my loan and have them reamortize it? Hold it in a savings account in case she defaults?
Any advice is very much appreciated! I AM LOST!!!
It also depends on the tenet.