I have heard of very experienced investors who have either lease option tenants or subject to buyers in their properties and helps them get their loan as early as 6 months or sooner. They are using some creative 100% financing purchase program where the down payment is received via some grant organization or other types of lending institutions who loan for the down payment on the home. All is legal of course. I don’t think that works in California, however because of downpayment seasoning.

My question is: Does anyone know of any programs out there to qualify my subject to or lease option buyers, so I can sell my properties right away? I know it’s being done.


Not sure on your state, but Chase and Natonal City will allow for grant money to be used as down payment. If you are placing them under a lease purchase or land contract your buyers will be able to use the new appraiser value as opposed to the agreed sales price after a year. This allows them to leverage equity built through appreciation.

A 580 mid score should get your people 100% financing. Worst case you give them a 6% seller concession and they’re in the home. Get a 1% down payment at incesption and your golden.

Just a note, all this will be a lot easier for them to find financing if you have them do a land contract instead of a lease option and you strenously insist on them paying by check so later you can prove housing payment history.