Rent credit VS cash down for lender money - Posted by Holly

Real Estate Investing Real Estate Financing
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Posted by James Strange on July 31, 2003 at 04:00:24:

It will depend upon how the rent credit was set. If they think that it is to much rent crdit they will not allow it.

But it also depends upon the lender. Some lender will consider this a refi. So they look at the loan amount compared to appraised value. In that case it is not a problem.

James Strange

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Rent credit VS cash down for lender money - Posted by Holly

Posted by Holly on July 31, 2003 at 01:08:27:

I’ll ask this question in the form of an example for the sake of clarity: If I have a home that will appraise for $375k or more and I set the selling price at that amount, will a mortgage company lend my lease option tenant $300,000 without a downpayment since they have the $75k in rent credit and they only need to borrow 80% of the purchase price, or do the lenders actually have to see the cash?

Thanks for your input.