Jonathon Mark Turner-Miller set up a rent-to-buy scheme which claimed to get mortgages for borrowers with a deposit of 5%.
The 63-year-old advertised the scheme as government-backed, promising to help customers get the home of their dreams.
He said the 5% deposit would be returned to prospective borrowers after the property had completed.
But in reality, Turner-Miller kept the money and used to it to fund his lifestyle, North Yorkshire Police said.
After a complaint, it was found the con-artist had scammed 11 victims between 2011 and 2014, all of whom had lost a significant amount of money.
Extremley great harm
Turner-Miller pleaded guilty to fraud at Teeside Crown Court and was this week sentenced to three years and nine months in prison.
Judge Ashurst said the level of harm this fraud had caused was extremely great and had adversely affected the financial and emotional state of each victim.
Many of those tricked are still suffering the effects of their financial loss and will feel the effects for years to come, the judge added.
Investigating officer for North Yorkshire Police, DC Gary SmithOwen said: “This has been a lengthy and meticulous investigation which started back in 2014, so we are pleased with the sentence that was returned by the court.
“I hope this sends out a strong message to those who think they can con people out of their hard-earned savings and take advantage of people’s aspirations, if you are suspected of committing fraud, police will turn over every stone and analyse every detail of your business, in order to protect the vulnerable.
“To those who think they have been a victim of fraud my message is to please contact Action Fraud at the earliest convenience and report the crime. Contact them on on 0300 123 2040.”