Lease Option
A lease option is an agreement that lets a tenant rent a home with the right to buy it later at a set price, often with part of the rent credited toward the purchase.
What Lease Option means
It gives buyers time to improve credit or save while locking a price. The option fee and rent credits are typically non-refundable if the tenant does not buy. Terms vary widely and should be reviewed carefully.
Florida example
A renter in Tampa signed a two-year lease option at $280,000, with $300 of each month's rent credited toward the down payment when they later qualified for a mortgage.
What it is
A lease option lets you rent a home with the right to buy it later. Part of your rent may go toward the purchase.
It is a form of rent-to-own.
When it helps
A lease option gives you time to save or build credit while living in the home. The terms must be clear and fair.
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Verify the details for your own situation against these government and agency sources: CFPB Owning a Home guide and HUD homebuyer resources.