Posted by Brent_IL on October 25, 2003 at 03:16:30:
It is somewhat like financing, but the risk parameters are different. Do a search of the archives on lease/option and l/o; they’re the equivalent of rent-to-own
The option price is usually about 110% to 125% of Fair Market Value. The lease rate runs about $100 to $250 above rents for similar non-optioned homes. Some or all of the excessive rent is given back to the tenant/buyer as a credit applied to the purchase price, or to a lesser extent might be applied to the down payment required, if they exercise their option. You can search for ?rent credit? also.