What is the difference between homes for lease purchase, lease option, and rent to own and what are the benefits of each?
Rent to Own is a general term used to describe a house that is currently being rented with plans to purchase it in the future. For our purposes and for the remainder of this page it is referred to as a lease option, see below. A Lease Purchase allows you to rent and occupy the home while having a contract to purchase the property for a set amount at a predetermined time in the future. There are two documents involved; a lease or rental agreement, and a purchase contract to buy the property at a later date. Lease purchase agreements vary from transaction to transaction, so there is not one universally standard contract. Lease Options are similar in that they often lock in the price of the home at the onset of the contract. However, with many Lease Options you have the right to purchase the property by a certain date, but are not obligated to do so. Most often, option money is non refundable in the event you do not purchase the property. With interest rates on the rise, however, it’s not
