One thought on “What is the difference between owner finance & lease option to buy?”
In short:
Owner finance is when the current owner (seller) agrees to hold all or part of the mortgage for you on the property. In affect he/she will be your mortgage company.
Lease with option is when a landlord and tenant agree to a purchase price and will take in consideration a portion of the rent paid as a down payment.
Here is something for you to consider if you are thinking of a lease option on a property. The rent on a lease option is generally higher than typical for the market. If at the end of the lease, you choose not to, or cannot buy the property you are NOT entitled to any portion of the agreed amount back that would have been your down payment. Less than 1% of all lease options end with the Lessee purchasing the property.
In short:
Owner finance is when the current owner (seller) agrees to hold all or part of the mortgage for you on the property. In affect he/she will be your mortgage company.
Lease with option is when a landlord and tenant agree to a purchase price and will take in consideration a portion of the rent paid as a down payment.
Here is something for you to consider if you are thinking of a lease option on a property. The rent on a lease option is generally higher than typical for the market. If at the end of the lease, you choose not to, or cannot buy the property you are NOT entitled to any portion of the agreed amount back that would have been your down payment. Less than 1% of all lease options end with the Lessee purchasing the property.
Think about it.