What is the difference between Rent To Own, Lease Option, Lease Purchase, Rent to Buy, Owner Financing, and Land Contract?
iRentToOwn specializes in Lease Option transactions, also known as Rent To Own, or Rent to Buy transactions. In a Lease Option, the Landlord-Seller leases the home to the Tenant-Buyer and the Tenant-Buyer has the option to purchase the home for a pre-determined price at any point prior to the end of the lease. The main components of a Lease Option transaction are the lease term, the purchase price, the down payment, and the rent credit. Lease Purchase transactions are similar to Lease Options; however, rather than granting the Tenant-Buyer the option to purchase the home, Lease Purchases contractually obligate the Tenant-Buyer to purchase the home. “Owner Financing” agreements and “Land Contracts” have similar payment schedules to that of Lease Options and Lease Purchases; however, these agreements enable the Buyer to purchase the home and obtain title at the beginning of the transaction. The Seller, instead of receiving a large cash payment at the time of purchase, as he/she would in
