"Rent credit" is a portion of the rent that is credited toward a down payment if the tenant decides to exercise the purchase option.

He will loan up to 90% of purchase price plus repair and holding costs - if I have enough personal reserves to cover "what ifs" and something he can attach his name to to cover the 10% (equity in my home or one of the cars).I have options for obtaining the reserve cash he requires, 401(k) loan, put a note on one of the cars, etc, but I'd prefer to exercise those options if and when the need arises, not just to make him feel better.

So basically refinancing is an out for the buyer if the bank exercises thier DOSC?

Follow it (intentional and planned deception to induce the lender to do something they would not approve it) and expect possible jail time if the FBI cares to chase you.

Mind you even then it's fun to do the work just for the exercise.

"Just Do It" is great advice if you're thinking about starting an exercise program, but it is terrible advice for buying real estate.

One of the problems is that your "buyer" may exercise his option and when you try to exercise yours, your seller refuses to complete the sale.

Usually within a few years when my tenant ends up exercising their option that I will give to them under a lease option agreement.

Your lease option is still just a lease with an option to buy which may never be exercised.

He should be allowed to exercise that option.