PTIN Seal

Mortgages & Loans

  1. PTINdirectory
  2. Tax Knowledge Database
  3. Mortgages & Loans
  4. What is a Lease Purchase Option Mortgage ?

What is a Lease Purchase Option Mortgage ?

A Lease Purchase Option Mortgage is a financing option that allows a potential home buyer to lease a property with the option to buy in the future. It is often constructed so the monthly rent payment covers the owner's first mortgage payment plus an additional amount as a savings deposit to accumulate cash for a down payment. A seller may agree to a lease purchase option if the housing market is slow and stagnent and the seller is having difficulty selling the residence.

Need Professional Help?

If you need help with "Mortgages & Loans" or have other tax questions, we can help you find a local licensed tax preparer for a free, no-obligation consultation.