Often people with bad or no credit find it difficult to own home because they are unable to get the loans from their banks and financial institutions providing the home loans. Lease options or rent to own home is quite beneficial for them which enable them to get the home and pay the monthly rentals to the house owner until the fixed period of time. After this time they own the home and enjoy the ownership.
In lease options or lease contract agreement buyer have an option to pay a down payment and enjoy the benefits of the property. Buyer and seller usually agree for the payment option and term period. Also as every state has different rules and laws they have to abide to the terms and conditions of their state government.
Different names are used while taking this opportunity and dealing in real estate. These are lease options, lease purchase, lease agreement, rent to own home, etc. In general whatever the rent is paid is considered as the down payment. This way no part of the money given by the buyer or renter is been wasted. In this lease agreement, agreement is done for a short period of time which may range from one to two years.
Lease options and rent to own home are quite similar and may provide you similar benefits. But there are some differences that should be noted while using these options. You should carefully note about these differences and should determine what actually you want and how each one of these can benefit. There are some pros and cons in both these options. And carefully noting the features, advantages and disadvantages will let you know about what can be most useful and advantageous for you in long turn.