Lease Option Vs Land Contract.

[Anonymous]

I found a land contract offered, but it suddenly change to a lease option, with me not only paying the inflated lease opt fee, but also adding a 220 for the stove and the dryer. The house has no 220 capability, so this would require MAJOR electrical work at my expense, which I would consider doing in exchange for the first year's lease opt fee, but the owner doesn't want that.  On a properly recorded land contract I would very seriously consider this, but not in a lease opt! Too risky, can afford Extended Stay for a bit until I can find another land contract, or perhaps a lease opt that doesn't need that much work. Another red flag was the agents quote "I am not sure they want to consider a land contract anymore because it gives the buyer too many rights." (Shady! accidental confession or lazy unresearched advertising?) 

I have found both good and (mostly) bad information regarding both land contract purchases and lease option to buy financing. I found many horror stories. However, I would like to know if this has worked out good for anyone? (I mean from a buyer perspective).

[bigman023]

Im on a lease option now.  So far, so good.  Im trying to get financed now. No inflated fees though. $1500 down, and $1500 per month, no time limit on when I need to purchase..  My deal was made with a builder.  I have seen some pretty 'shady' looking lease options.  But Im comfortable with the agreement I have.  Im 18 months into my agreement, and 6 points away from the magical 640 FICO needed to get a USDA  loan.

Like anything else, choose wisely and you should be fine.

eta:  Also, watch the FSBO housing ads.  I've noticed they have some rental oppurtunities, where realtors have bought a distressed  property dirt cheap, and are looking for rent-own candidates.  They are usually structured to where you need to buy 6 - 18 months.

Good Luck!