Bob:
If you can document that you have paid timely on the rental payments to date and they would be comensurate with what a mortgage payment would be, here is a way to go that will allow you to close FAST and almost custom tailor the repayment terms:
The seller would agree to “roll over” your lease purchase into a 1st lien Seller financed mortgage & note. This 1st lien mortgage and note if structured correctly would then be sold by the property seller at the SAME time you complete your purchase of the property and will provide the $190K +/- cash proceeds to the seller that the seller wishes to receive.
The beauty of going this way is that there will be NO points, NO application fee, NO prepaid escrow account expenses, NO PMI, NO lender so called “junk” fees, and NO prepayment penalty on the financing.
You get into the home, and then after a short period of time (12 -18 months) you can successfully do a refinance Loan (which is a whole lot easier to do that a purchase money loan)and try to obtain the VERY lowest rate you can qualify for.
I dont know if this is the right place to post this.
So I will post it in a few other places through out
the site.
Here is the deal.
I am currently in a lease/purchase as the buyer.
The home was built in 1999
It appraised in early 2000 for 265,000
I bought in on mid 2000 for 246,000
Between down payment and rental credit I have 20k in it.
The seller is motivated and will give me an additional 10k
off if I close is the next 3 months.
I also can put an additional 25k down.
So it would look something like this:
Sell price: 235,000.00
Down: 45K
Balance of loan: 190,000.00
I am self employed and had a bk 2 yrs ago.
However my income is high.
I am looking for some one who would be interested in making
the investment. Any rate within reason and balloon out in 3 to 5 years.
Also any suggestions would be greatly appreciated.
Posted by Jim IL on December 27, 2000 at 02:44:21:
Bob,
You have been in the home for how long?
If you have been in the home for 6 months minimum, then contact a good mortgage broker about a refi.
As long as you can track the payments made on time with cancelled checks, you should be able to do this.
Especially since you have equity to play with and more cash to put into the home.
IF the mortgage broker you talk to cannot refi a L/O, call a few more and find one who can do this.
or
You could always ask the seller to rewrite the agreement as a contract for deed and refi from that.
There are PLENTY of lenders out there, so go find one.
And lastly, Mike’s idea below is also a good one.
I’m just not to savvy at creating and selling notes, so the refi would be my first choice.