Can I Lease Option A Low Income Rental
I have come across a seller who is about to have a reduction in income(she is going on disability). Therefore she wants to sell her home and "downsize" however she would love to stay in her home if she could afford the land contract payments. She wants 75,000 for her home because she figured it would cost 45,000 to buy the home she wants and she owes 30,000 on the land contract. however being an investor I know that her current home is only worth about 35,000. its an old mobile with an addition on 1 acre. I would like to help her. So I was thinking if I were to take over the land contract and rent to her under the terms of a lease option, with section 8 low income rental assistance. is that something that HUD might go for? 
First, "take over her land contract" - what does that mean (1) pay it off (2) take title and make start making the payments.
Besides wanting to help this lady out - would you do this deal without the lady involved? What is your monthly spread?
And really is this a lease option or just a rental. If she is having a reduction in income, how will she ever afford to buy the property.
By taking over her land contract i mean assuming her land contract. She bought the house on a land contract, and I would basicly take her place under the terms of the land contract. Then I would lease her the home under section 8 low income rental assistance. Fair market rent for her home is $728 per month. Her land contract payment is $600 per month. Her new income would be $1,000per month and under section 8 her portion of the rent cannot exceed 40% of her income so her bill would be reduced by $200 at least. If HUD would allow her to buy back the property under the terms of a lease option then........... What I am realy wondering is if hud would allow a lease option instead of just a lease. Hud would be helping her, not just with rent but also with the purchase of her home without any extra expendatures of funds. All of this depends on if it can be structured to be win win win for all involved, but I need to know if hud would allow this before I proceed. :-?
there is a provision under section 8 that allows lease option . I believe it is called 8y. I just heard about it last month at a conference I was attemding
http://www.hud.gov/offices/pih/programs/hcv/homeownership/
Hope this helps
Yes, that is exactly what i was looking for thank you!