lease option 10/2016,for %275K, value now $365,700.00. My loan to pay off computed on $275K or current value?

If you occupy the property as your primary residence, then FHA allows you to do a cash out refinance up to 85% of the properties appraised value.. so in your scenario, $365,700 Value X 85%= $310,845 - $275K payoff = $38,845 Gross Cash out amount. Understand that this number will be reduced by your closing costs, so if closing costs are $4,000, then $38,845 - $4000 = $34,845 "Net" cash back. Let me know if I can help.. I'm a preferred Lender with California and Arizona being my primary markets. If you or someone you know is looking for financing options, feel free to contact me or pass along my information. 480-287-5714 WilliamAcres.com NMLS# 226347 / LendUS, NMLS 1938/ AZMB0121893