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Can I refinance a mortgage that I borrowed from the seller?
I purchased rental property. I am not living in the house. I am getting the title and all that other jazz so I will be the owner of this house. The seller is lending me the money for one year, like a balloon payment under the conditions I will be refinancing through a mortgage company the remaining balance I owe him. My question is, can I refinance off of money I owe this guy? Also, would it require a down payment? And lastly, are there any stipulations considering I will not be living there and it is investment property.
Thanks, to anyone that has the slightest clue how to answer that.
Answer: You don't refinance, you get a mortgage. Yes, 20% down on an investment property.
Question: What kind of contract are you signing with him?
Answer: Basically the house is paid for and he owns the house. He will be transferring the title over to me and I will be responsible for paying taxes and whatever happens with the house. He will be collecting monthly payments for 1 year. Within that year I will have accumulated enough revenue from rentals to put towards a down payment on a investment property mortgage. He will be getting 4% APR from the money borrowed for that year.
3 Answers
- ?Lv 78 years agoFavorite Answer
If your financial situation is solid and you have good income, steady employment over the past 2-4 years and credit score is good you should qualify for a loan. Since you would be considered the owner(with private lender) it would be a refinance which generally does not require a down payment but the property would have to appraise for more than the loan. Good Luck
- Wayne ZLv 78 years ago
Did you give the seller any sort of down payment?
You are going to need at least 20-30% equity in this property and, even then, it may be difficult to get financing.
Banks are very skittish about lending on rental properties.
- ?Lv 78 years ago
You don't refinance, you get a mortgage. Yes, 20% down on an investment property.
What kind of contract are you signing with him?
