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Question about refinancing

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bm12484
Member

Question about refinancing

I'm hoping someone can shed some more light about a refinaincing opportunity my boyfriend and I have been presented with. Someone we know and trust owns a property we have been living in for a year now. They have given us the opportunity to buy it, but would like to hand it over to us this year.

 

My boyfriend will be finishing his second year of being self employed so lenders won't even consider us until he has two years of tax returns next year. Because of this, we've been offered a 0% loan from this individual this year to cover the cost of the apartment minus the down payment which we have saved and a verbal agreement that we will refinance when we can and pay this person back.

 

My question is when we attempt to refinance next year, will we be able to pay this person back? I'm not exactly sure how you go from having a 0% interest rate loan from a private lender and then refinance with a bank and pay out our private lender? Will this be possible, if we have credit scores in the 700 range and together make enough income to carry the apartment, will we get stuck with an outrageous interest rate just bc of the nature of the deal?

 

Thanks in advance for any advice

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