Is a Lease Purchase Loan a Refinance?

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I am in a lease purchase. When I go to get a loan is it the same a refinance?


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Not anymore!  In the days of B&C loans it was allowed, now it it is treated as a purchase by Fannie, Freddie, FHA, VA & USDA.  In addition, if you are getting a credit toward the purchase with your payments, you are only allowed that amount that is above the fair market rent value determined by an appraisers rent analysis.  If it does not show you are paying more than ythe current rental value it will not be allowed regardless of your lease purchase contract agreement. 

You may be able to work something outside of closing with the seller but that’s up to the two of you and cannot be part of the contract or be shown on the HUD1 settlement statement.

Answered almost 6 years ago
skipghm2
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4 months ago Sorin Lassmann said:
 

Fresh Cut BG / SBLC, MTN Specifically for Lease @(5.0 + 0.5 + X)%.Intermediaries/Consultants/Brokers are welcome to bring their clients and are 100% protected We are direct to a provider for BG/SBLC specifically for lease, at leasing price of (5.0 + 0.5 + X)% of face value, Issuance by HSBC London/Hong Kong or any other AA rated Bank in Europe, Middle East or USA. Our BG/SBLC Financing can help you get your project funded, loan financing by providing you with yearly renewable leased bank instruments. We work directly with issuing bank lease providers, this Instrument can be monetized on your behalf for 100% funding: For further details contact us with the below information.

Contact : Mr. Sorin Lassmann Email: providermandate.ls@gmail.com Skype ID: ls.nicu


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I am assuming that you mean that you are renting a place, with an option to purchase it.  That would mean that when you exercise your option, you are a buyer of the property, and need to finance it as an acquisition, not as a refinance.

If you are actually in an installment contract of sale situation, which means that you have agreed to pay a specific price for the home, have moved in, and are paying a monthly fee, part of which goes towards the purchase price of the house, then, depending upon how long you have lived at the property (or, how long you are under contract), you may be able to refinance the property.

Answered almost 6 years ago

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No, it is not the same as a refinance. A lease purchase is a deferred legal committment to consumate the transaction at an agreed upon future date. Until then you are making lease payments.

Your loan application is for a new loan to purchase the home and all of the normal requirements and qualification items apply. Normally it is permitted to purchase the home before the end of the lease period but this would depend on your particular states real estate laws and the wording in your contract for your state.

I suggest you contact a qualified lender and discuss any possible options that may pertain to your particular situation.

Answered almost 6 years ago

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When you go to apply for your loan the transaction will be treated as a purchase, because you do not currently own the property.  It is also important to note that if a part of your rent has been applied to the down payment most lenders will only consider that portion above “market rental value” as a contribution to your down payment. 

For example, if the current market rental value in your area is $1,000 per month and you have been paying $1,200 per month then $200 per month will be counted towards your down payment.  In this example, if you have only been paying $1,000 per month than a lender may not consider any portion of that amount towards your down payment. 

Answered almost 6 years ago
Lydia Snow
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No.  You will get a loan when you actually make a purchase of the home and it will be considered a purchase by the bank.  Prior to that, you are considered a tenant, even though you have a contract stating that you will be purchasing the home at the end of the lease term.

A lease-purchase agreement is an agreement whereby a prospective buyer agrees to lease a home from the seller for a number of months or years.  Often the rental amount is a little higher than normal market rent in that area and some buyers put down a non-refundable deposit of thousands of dollars.  In exchange the tenant/buyer has the first right to purchase the home at a set point in the future.  Sometimes the purchase price is set in advance.  Other agreements state that the future market value determines what the sales price will be.  After the correct amount of time has elapsed the buyer applies for a loan from a bank and makes the purchase.

Answered almost 6 years ago

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Fresh Cut BG / SBLC, MTN Specifically for Lease @(5.0 + 0.5 + X)%.Intermediaries/Consultants/Brokers are welcome to bring their clients and are 100% protected We are direct to a provider for BG/SBLC specifically for lease, at leasing price of (5.0 + 0.5 + X)% of face value, Issuance by HSBC London/Hong Kong or any other AA rated Bank in Europe, Middle East or USA. Our BG/SBLC Financing can help you get your project funded, loan financing by providing you with yearly renewable leased bank instruments. We work directly with issuing bank lease providers, this Instrument can be monetized on your behalf for 100% funding: For further details contact us with the below information.

Contact : Mr. Sorin Lassmann Email: providermandate.ls@gmail.com Skype ID: ls.nicu

Answered 4 months ago

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Am direct to a genuine provider for BG/SBLC specifically for lease,at leasing price of 3% + 0.5%+X% of face value,Issuance by HSBC London/Hong Kong or any other Bank in Europe,Middle East or USA.

Mr. kim sungnyon Email: sungnyon.bgsblc@gmail.com Skype:kim.sungnyon

All inquires to Mr.kim sungnyon should include the following minimum information so I can quickly address your needs:

Complete contact information: What exactly do you need? How long do you need it for? Are you a principal borrower or a broker?

Answered 2 months ago
17 days ago Maxie Saviel said:
 

Dear Sir/Ma,

We have direct providers of Fresh Cut BG, SBLC and MTN which are specifically for lease. Our bank instrument can be engaged in PPP Trading, Discounting, Signature Project(s) such as Aviation, Agriculture, Petroleum, Telecommunication, Construction of Dams, Bridges, Real Estate and all kind of projects. We do not have any broker chain in our offer neither do we get involved in chauffer driven offers. We deliver with time and precision as set forth in our agreement. Our terms and Conditions are reasonable, below is our instrument description.

DESCRIPTION OF INSTRUMENTS: 1. Instrument: Bank Guarantee (BG/SBLC) 2. Total Face Value: Min of 1M Euro/USD (One Million Euro/USD) to Max of 5B Euro/USD (Five Billion Euro/USD). 3. Issuing Bank: HSBC, London or Deutsche Bank Frankfurt or 4. Age: One Year, One Day 5. Leasing Price: 5.0% of Face Value plus (0.5+X)% commission fees to brokers. 6. Delivery: Bank to Bank SWIFT. 7. Payment: MT-103. 8. Hard Copy: Bonded Courier within 7 banking days.

All relevant business information will be provided upon request.

If Interested kindly contact me via Email:~ Maxie.finance@gmail.com Skype ID: maxil.finance


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We offer fresh cut bank instrument for lease/sale, such as BG, SBLC, MTN, Bank Bonds, Bank Draft, T strips and other. Leased Instruments can be obtained at minimal expense to the borrower compared to other banking options and we also discount/monetize BG’s. This offer is open to both individuals and corporate bodies. If in need of our services, contact me for detail information. Thank you, Mr.Joe Duane email:jduane076@gmail.com Joeduane@consultant.com

Answered 6 days ago
Joe Duane
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