Hi,
Does anyone know whether the following is true? I’ve been told that a rent-to-own (lease option) tenant can exercise his purchase option and acquire the property via refinancing rather than the traditional mortgage route after ~2 years. True, False? Does anyone have any suggestions on how to go about verifying this?
Thanks!
Yes, this is true. However the lease to own contract must be very clear about the intent to purchase the property after a specific period of time. Also, you will most likely be required to provide documentation that the last 12 months of payments were made on time. This can be in the form of canceled checks or bank statements. If you paid in cash you will find it difficult to get this type of transaction closed.