Posted by Dave T on November 03, 2002 at 14:06:22:
My lender tells me the same thing. I can only do a refinance if I am on title. In a Land Contract situtation, the seller is still the owner and therefore my loan to payoff the land contract will be processed as a new purchase loan.
refi on land contract? - Posted by Dennis Cox
Posted by Dennis Cox on November 03, 2002 at 13:23:00:
I made a deal on a rental about 1 1/2 years ago. I am now at the point of needing to pay off the baloon. I am going to the bank and they seem to be handling it like a regular purchase. I bought the home on a contract for deed (I hold title) for $69,000 with $8,000 down (I took a private loan for $6,000 @ 15%,for 18 months interest only pmts, plus $2,000 on a credit card). The bank will lend me $71,000, at 6.34% for 30 yrs. figuring the home will appraise at $95,000. The fees for this loan will be approx. $4000 according to my bank. This will give me the $6,000 I need to satisfy my private loan, but the bank will get the rest. I will have $2000 out of pocket (outstanding on the credit card) and have a $71,000 loan at 6.34% which will still yield a positive net, though I had hoped to recover some of my down (the $2000). Does this get handled like a new purchase even though I am refinancing? Are these fees reasonable? Am I doing this right? Thanks for any input.
Re: refi on land contract? - Posted by DavidV
Posted by DavidV on November 04, 2002 at 23:37:39:
Some banks will do a refi from a contract for deed and/or a lease option and some won’t. The fees will vary. The best thing to do is call several lenders and see what they will do.