Posted by j.a. on September 27, 2004 at 09:35:07:
the lender is correct. it will be treated as a refi. you still get your cash, and buyer rolls in all closing costs. it’s a good deal for all involved.
refi vs purchase? - Posted by KZ in WA
Posted by KZ in WA on September 25, 2004 at 12:46:23:
I own a SFH that I have lease-optioned to the tenant. It is time to execute the purchase. I spoke with a lender recently who advised me that we could refi the property in the buyer’s name rather than creating a new mortgage. The lender claimed our tenant would get a better rate, would have benefit of the equity to circumvent PMI, and that I would still get all my cash out of the property. I’ve never heard of this. Does anyone know anything about this type of financing option? What are the pros and cons for both the seller (me) and the buyer (my current tenant)?
I’ve been reading these posts for a long time and this is my first post. Thanks, in advance, for any information.