What is a Lease Option?
"Rent with the Option to Buy" or "Lease Option" means you are renting a property with the option to buy it at a future date. The future price of the property is fixed at the time the lease option contract is signed. In most cases the monthly payment is larger than normal (for example an extra $1,000/month) and the excess is put in an escrow account and used towards paying your down payment at settlement. The "lease" part of the contract is similar to a traditional lease. The "option" part of the contract specifies when you will purchase the house and for how much.

Why is a Lease Option Good for Buyers?
Due to the recession it is harder for buyers to obtain financing and down payments need to be larger. If a buyer has good credit and a good income, but doesn't have.......