Lease option

The lease option is another self employed home loan option. This contract allows the renter to build equity in a rent-to-own scenario. After the renter has agreed on a purchase price with the seller, the renter moves into the house prior to transfer of the title and makes monthly rent payments to the owner. A portion of the monthly payment is set aside as the down payment. At the end of the lease, the renter can either walk away or apply the funds that have accrued to obtain a contract. This gives both a down payment and time to acquire the 2 years of tax returns needed for a conventional loan.