Lease Option Financing

Lease option financing in real estate is a rental agreement that gives a tenant the right to purchase the property after a specified period. The tenant pays monthly rent and an option fee, which can be credited toward the purchase price later. This method allows individuals to live in a property while deciding whether to buy it, providing flexibility and potential equity. It benefits sellers by attracting tenants who may eventually become buyers, while offering buyers a chance to test the property before committing to a purchase.