Good Morning,

I have an existing mortgage on a property that I Airbnb.   The mortgage is behind, but I have made made my monthly payments for about a year.  Right now, the Airbnb income covers the existing mortgage.  House was on the market for the past 9 months but did not sell - I priced it a little high and it is a higher end home.

I moved out of that house 15 months ago and entered into a 'Lease to Own' on a property that the 2nd mortgage holder filed FC paperwork against the home owner.   That FC is now off the table because the home owner entered into a modification plan.  The terms of that Lease to own are:

Purchase price of $250K ( December 2019 ) with $30K paid toward the purchase price in increments during the first 15 months.  That $30K has been paid.

Monthly Lease of $1800 with $400 a month going toward purchase price.  All payments of been made on time.

I need to get a mortgage to wrap up the purchase by November  If I dont, I can extend the terms for another year with another $20K payment ( which I will be able to make ), and the purchase price goes up 1/2 % a month for that additional 12 months.  I want to avoid this.

I want to get a 15 year mortgage/loan.  to complete this purchase.  The mortgage payments will prob be less than our lease.  Taxes are only $3K a year.

I have also put in approximately $20K into the house to make it more livable ( flooring, new kitchen etc ).

With the spike in home values in our area over the past year, I feel that the house is probably worth in the $325K range, and our outstanding balance that we owe now is approx $215K.  1800 ft square house, with attached garage ( which we are going to convert into living space this summer which will take it to 2400 sq ft ) on 3 1/2 acres.

Wife and I credit scores prob in the 5/600 range.  Mine is lower, hers is higher.  We are self employed, but we do show W-2 income of about $60K and we take an additional $20K a year or so out of the business in the forms of equity distributions.

Our problem is the first house and the higher mortgage/tax payments.  With that outstanding, we dont qualify for conventional mortgage.  

Any thoughts?  Thks in advance