Lease Options  often lock in the price of the home at the onset of the contract, Meaning that with a  Lease Option you have the right to purchase the property by a certain date, but are not really obligated to do so. 
It’s your option. . .

There are positives and negatives aspects for a lease option. . generally in this market a lease option will tend to benefit the seller and not the buyer.

This is why:

The seller will be insistent in a price much higher than today’s market will bear.

A $200,000 home suddenly is a $225,000 home.

You will be pressured in making HIGHER monthly payments than a normal rental agreement.

Two years later:

The seller benefits the most because. . You’ve paid his mortgage the last 24 months.

And if you exercise your option.. He is taking $25,000 more for his/her investment.

If you decide NOT to buy. . two years later, you essentially will lose any extra payments you paid  the owner and just walk away and the owner has his property FREE AND CLEAR again.

 Most likely during the two years any problems with the property will be your responsibility. . unless your contract says differently.

“It’s your house”

“You fix it. .”

That will be the attitude of the owner.

 The only way you could benefit from a lease with option to buy is that:

The property value went UP TO THE SKY and two years later, it is now worth $250,000 !!

You will be making $25,000 when you go to closing

The question is:

After all these problems we are having in the mortgage industry, I hardly think two years from now, we will average no more than 3% equity gain per year.

In a $200,000 property . . that is only a $12,00 gain two years from now. .

That is  . .if everything goes well. .

To summarize. A Rent w/ Option to buy could benefit you if the right seller is found. . just proceed with caution.

If youhave any questions or concerns. . I'm one phone call away.