*** Lease Option Refi, please advise

[-Rami-]

Good day and thanks for taking the time,

I have a weird scenarion that i have never come across and i need some help.

I have a client who owns a property and he’s leasing it with the option to buy to a tenant. The client would like to refinance the property under the tenants name and get off title. He tenant can verify that he’s been living in the property for a while now since he was the original owner of the property to begin with. The tenant came across some financial problems so he sold it to the client who agreed to leave the tenant in there with the option to buy the property back. I didn’t even know that something like this exists yet I was told that as long as they have a lease-option contract signed with rent history, it could be done.

Here are the highlights:
• Refi – Cash out
• 661 mid fico
• Stated
• 80%LTV ($280,000)
• $350,000 appraised
• New Jersey – single family

Advise as to which lender might do this? I already called Equifirst and they offered 8.5% on a 3/27 ARM. Any other advice?

Thank you

[Troy]

That's probably about as good as it gets right now.

I've hear Resmae & First Horizon still have doors open, but I'm kind of taking a few days to let the dust settle and see who is standing.

Good luck!

[Business]

We popped a bunch of these Lease-Option Purchases back in Jan-February, none with credit scores that good though (more like 550-580).

Equifirst was our big player for lease options.