My mother is behind on payments buying the adjacent property.

I could finance either property by not touching my current mortgage, using only my savings for down payment,  or I could refinance my current property and purchase 108k property outright.

Some background: my friend is a tenant who has been living rent-free in a unit for over ten years but is a professional painter and has been painting numerous properties/units for the landlord in lieu of rental payments.

I've had good luck with SmartMove for screening and online payment too.

As long as 75% of the rental income covers the mortgage payment (PITI), you are good.  

I don't have to put a down payment nor I will have to pay PMI and have a low interest (3.5%). 

Within the next month or two I'll have more than enough for an FHA down payment in my area on a property.

Yesterday was our mortgage contingency date and the lender says he just submitted our file to U/W and our lawyer requested a 7 day extension.I’ve provided every document asked for quickly and clearly labeled.

Then it would not be an assignment fee being paid, but actual proceeds, from which your option payment could be made to the seller"Any advise on this?

I am about to purchase a home in FL and take over payments, as seller just wants out.