I had a property with Rent to Own. Now the term is up…How do I help the tenant to refinance? Is there any bank out there doing it.
Please reply
They should have started before the term was up. Its not your responcibity to help them but you can. Have them go to a mortgage lender and get financed. Your records of timely payments may help. Herbster
Yes, absolutely there are banks out there
doing it…
What has your tenant done so far to move
the process further?
What’s their intentions?
How were payments made?
Note: you dont refi out of a lease option aka rent-to-own. Assuming you had the contract structured properly, that is, a lease and a SEPERATE option, your tenant would need to go out and find a purchase money mortgage, NOT refinance. Since you’re presumably the owner of the option, YOU can extend the option period and allow the tenant to buy the property, if they’re actually qualified to do so. Have you been giving them a rent credit each month toward their DP?
I have used Cornerstone Mortgage http://www.avanguyen.com/ They are n Houston and I am not sure if this is a state by state issue. What you want is a bank that understands what you are doing. Most mortgage brokers and almost all banks will say just what JakeRodgers said that it is a separate and independent action. Although it is, they underwrite it like a refinance. Lower loan to value, lower credit score etc.
Now just be warned, I have not done one since al this mortgage mess has been happening with appraisals and cash reserves and income verification and such.