Newbie post & investor

I was wondering if anyone has ever tried using the “downpayment assistance” program within cities to use and lease out that property? I was reading their guidelines that you are not allowed to lease them out but wondering if there are any loopholes. Thank you.


No Loop Holes! If you buy owner occupied then your going to need to fulfill the conditions of programs and lenders before your eligible to move and make your old home a rental. Don't get your self in legal trouble trying to scheme to circumvent a program because you will ultimately end up in trouble!


thank you so much on the response. I am fairly new and I’ve been reading a lot of articles and watching plenty of videos so I’m learning as I go. Trying to make my first deal work without using my own money or not leaving much down so I’m looking at all availabe options.

If you are looking to reduce your down payment, consider these options:

Option #1: Negotiate a separate installment plan for the down payment. Sometimes the seller will allow you to pay the down payment on a monthly basis.

Option #2: Trade something other than cash. This could include land, a car, a boat, jewelry or valuable collectibles. Find out what they want and need. Maybe you have, or can get, just what they are looking for. You could also trade services such as carpentry, auto mechanics, painting, dental work and other services that you can do for the seller over time.

Option #3: Find an investment partner. Look for an investment partner who will put up some or all of the cash in an equity-sharing partnership. You make the monthly payments and the two of you split the eventual resale profits.

Option #4: Find a property to rent-to-own or lease with an option to buy. If you have a lease-option for 5 years, at the end of that time, you will need to purchase the house and can get a bank loan then. Meanwhile, you can use the time to fix your credit and/or save for a down payment. Some contracts may put some or all of the rental amount towards the down payment.

Option #5: Get owner financing or a land contract. Another option is to have the seller act as the bank. You make your payments, including interest, directly to the seller. Then after usually 3 to 5 years you make a lump sum payment to the seller. During this time, you should have enough equity to qualify for a standard bank loan.

Option #6: Use a home equity line of credit from another property. If you have equity in another property, you could use that equity as a down payment on purchasing another investment property.