Loans on properties with lease clause

3 Replies

Hello! I started listening to the Bigger Pockets podcast a couple of weeks ago and am loving it so far.  I'm hoping someone here maybe able to help me out with some unique financing advice.  My family and I are looking at purchasing a home in the mountains to live in full time for a year or so then use as a vacation rental.  The home is within a national park and on property which gets leased to to purchaser (for 99 years) by the non-profit group that actually owns the land.  They do this so they can maintain control over who is able to purchase there (it is a christian based organization).  In the lease agreement, there is a clause which the leasee affirms they are in fact christian (which we are).  Upon applying for financing, we were denied due to the fact that the lender does not lend when there are "religious affiliations" in the lease due to it making resell more difficult in the event of foreclosure.  We currently own a home which we have approximately 50K equity in.  We were looking at selling this home to use towards the purchase of the cabin which is only 150K.  We are well qualified to pay off the remainder in as little as 5-7 years if need be but most lenders balk when it comes to the lease term.  Any advice? Thanks- Ed

BTW. I just read the rules.  I am not looking for someone on the forums to loan to me directly.  Just looking for some advice on where to start looking.  Thanks. 

that sounds illegal and a lot like discrimination. Not a lawyer but I though religion was on the no-no list for refusing someone. 

Well, I think their basis was not the religion necessarily.  More so the fact that there was a religious clause in the lease limiting their market in the event of a foreclosure.  I would imagine the same thing would apply with a retirement community or something where you would need to be above a certain age.  I would think there would have to be SOMEONE out there who would want to finance this with that high of a percentage down and the overall payment being well within our means.  

bump....Would a portfolio lender be a better plan of attack in this situation?