Hi, and thanks for the question
A "Lease to own" home is one purchased via a financial program that
helps low- to moderate-income buyers or purchasers with credit
problems get into a house by first renting it and then converting the
lease into a purchase at a given price at the end of the lease.
Many financial lenders run this kind of scheme, with different leasing
periods, or different payment profiles during the leasing period, but
the main aim is to allow the borrower to get onto the property ladder
in cases where they might no otherwise have had the option.
According to the "Renting and Rent to Own" site at
http://credit.about.com/cs/consumerwisdom/a/091401.htm
"A seller can agree to rent property to a tenant, allowing the tenant
to rent and live in the residence while guaranteeing the tenant the
right to buy the rental property at agreed upon terms during an agreed
upon time period. However, the tenant is never obligated to purchase.
The owner, on the other hand, cannot sell the property before the
agreement's expiration date. When the lease is signed, both parties
also agree on a purchase price for the home. The seller cannot change
this figure any time during the lease's term. This option also allows
a neighborhood to be thoroughly checked as well as the house itself
without any commitment to purchase. It also allows a home to be set at
a fixed price as the selling price is usually established at the
beginning of the contract. Also the purchaser has additional time to
develop purchasing resources without losing a home of choice"
Hope that answers your question
willie-ga
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