Home-leasing plan

Lease-purchase agreements are now being used in certain markets. Under this arrangement the buyer leases a home while retaining the option to buy for a period of at least one year. The seller receives monthly lease payments plus option money, which the buyer may later apply towards a down payment on the home. The advantage of this financing technique is that it permits the buyer to move in right away and still have time to accumulate enough savings to make the required down payment. Meantime, the seller is receiving cash payment while still enjoying the tax advantage of owning a home.