Looking for a lender to finance sale between tenant and I on SFH

[Michael McDermott]

My tenant of 3 years would like to purchase my home which I have a FHA loan on, he has very little money for a down-payment and last time we ran his credit it was around 590. I am willing to give a full sellers assist but he still comes short of the 3.5% (assuming 135k sale price).

Are there any lenders who have a credit assistance program or 0% down payment (non military) program we can use. I am willing to be flexible in the sale just to 1031 the profits into another property. Any and all advice is welcome, that lets me get rid of my FHA and sell this house.

[Shaun Weekes]

Originally posted by @Michael McDermott:

My tenant of 3 years would like to purchase my home which I have a FHA loan on, he has very little money for a down-payment and last time we ran his credit it was around 590. I am willing to give a full sellers assist but he still comes short of the 3.5% (assuming 135k sale price).

Are there any lenders who have a credit assistance program or 0% down payment (non military) program we can use. I am willing to be flexible in the sale just to 1031 the profits into another property. Any and all advice is welcome, that lets me get rid of my FHA and sell this house.

 Hello Michael,

Maybe you can do something creative like holding half of his rent payment every month.

This way he will have the down payment in 3, 6 or 12 months or whatever.  

Because you're doing this favour you won't have to give seller credit unless you choose to.

It will take longer but it gets the job done.

Just remember that he would have to have 2 months of bank statements showing  the down payment.  Maybe you can re write the rental contract to show x amount of money saved towards a down payment.  BUT to be really safe I would strongly suggest that he have the 2 months reserves.