They cannot “move” the mortgage to the new property, but they need to deal with the obligation so that they can get a new loan on their next property. As a rental, they only get 75% credit for payments. Thus, if their payment is $1000/month and they rent it to you for $1000/month, they are in negative cash flow to the tune fo $250/month as far as the lender is concerned. This may affect their debt ratios.
Some lenders will treat a lease/option as a “sale” and credit them 100% for your payments. Most lenders treat a land contract as a sale, so you may want to talk to the owners about doing a land contract.
The owner of a house is moving out of province (state-for my U.S. Friends)and
they want to transfer the existing mortgage on their house to the place they are buying.
Is it possible to do a lease option in a case like this, provided they are willing?
For example, if I enter into a lease option with them, how do we work it so they can use the mortgage to finance the place that
they are buying.
I am still trying to wrap my head around how this works. I am
learning primarily from this site but am ordering the courses.