A cash out refi will be limited at a 70% LTV too. 

We had a tenant for 2 ½ years, He was the only person on the lease, but in the application he put his son who lived there till last December.

There are codes that limits the number of people based on bedrooms, usually 2 per bedroom, so a 5 BR can have 10 people if related.It's funny thinking back 50 years and the prejudice of people.

Nope  nor should you.. now could pay cash then do a REFI after and have a limited amount of cash in it.. folks do that all the time.. but no equity lending is highly risky

And with the roof being 5 years old I feel good about limited capex in the near future. 

This deal is probably dead.Moving forward, house-hunt with the income limit map for Home Possible open in another browser tab --> http://www.freddiemac.com/homepossible/eligibility.html <-- that way you have a plan A and a plan B.

These are often transferred in bulk... with the deed having page after page of legal descriptions and possibly a chart of annual rents.It should be easy to find people who own hundreds of ground rents by limited research or just asking around.Each ground rent gets registered with SDAT using their form.You don't foreclose a lease... you pursue an ejectment action or action for possession.

I've made this decision because of the potential in my limited budget right now.

If they ask why not, you can tell them that laws were passed limiting non-mortgage brokers from creating mortgages or anything that looks like it could be a mortgage.

Why limit yourself?