Rent is often set higher than the market average, with a portion of the extra payment (a "rent credit") potentially applied toward the eventual down payment.
A lease with an option to buy, also known as a or rent-to-own , is a real estate agreement that allows a tenant to rent a property for a specified period with the exclusive right to purchase it at the end of that term. Unlike a standard rental, this arrangement provides a structured path to homeownership for individuals who may need extra time to improve their credit scores or save for a down payment. How the Agreement Works lease with option to buy
The future sale price is usually locked in at the start of the lease, protecting the buyer from market appreciation. Rent is often set higher than the market
27 Apr 2026 — What is a lease option and how does it work? * Have you recently considered buying a house but aren't sure you're ready to commit? Rocket Mortgage How the Agreement Works The future sale price
A lease option typically combines two distinct legal documents: a standard residential lease and an option agreement.
The tenant pays a non-refundable upfront fee (often 1–5% of the purchase price) to secure the exclusive right to buy the property.
A key feature of a lease option is that the tenant has the right but not the legal obligation to buy. In contrast, a lease purchase agreement legally binds the tenant to complete the sale. What is a lease option? - Rocket Mortgage