Financing my tenants

[cmontminy]

Is it possible for the owner of a house to finance its tenants so they can purchase the house?



If my tenanats do not have the 5% down payment required. Can I lend them the money ?

 

[RobMacdonald]

There are programs where clients can borrow their 5% downpayment, or get 5% cash back from a lender, but you cannot lend the money to a purchaser of your property. The loan has to be non-arms length.



Your tenants might be interested in a Free Downpayment program. They will pay a higher interest rate, but if they don't have other alternatives, it may be the way to go.

 

[Jeffersonn]

I appreciate the response that every question gets here in this forum and i think all the problems discussed here are practical in nature.The expert members really do help and that makes this forum a really useful platform to give people the honest and expert advice.

 

[Dan_Eisenhauer]

You could also do a Rent To Own or Agreement FOR Sale with them.

 

[invst4profit]

Since no one else is going to say it I guess I will.



If your tenants can't afford a down payment they can't afford to own a home. People that are unable to save money make very poor home owners and are a very high risk to default on a mortgage. They are the same people that get evicted for non payment of rent because they had a unexpected car repair. They are already living beyond there means.