If a tenant wants to exercise their L/O and they go to a lender for financing, would they be refinancing the loan? Or would this be considered a new purchase finance?
Denise(Austin, TX)
They are exercising their option to buy.
So it would be a new loan.
;D
Bruce
Depending on how long they have been leasing, it could be done as a refinance. Depending on the parameters they could even get cash out.
It is known as a land-contract/lease purchase refinance. You use their rental/lease history as mortgage history.
They have been leasing for 1 year. Is that long enough?
Denise
yes 1 year is fine. they will need their cancelled checks as payment history