A lease-to-own (LTO) transaction is one in which a potential homebuyer occupies the home as a tenant but has an option to purchase it within a specified period at a specified price. In exchange, the potential buyer pays a nonrefundable option fee upfront plus a monthly rent. In a recent article, I noted the intense interest in LTO deals today by wannabe homebuyers who can’t qualify for the mortgage they need to make a purchase now.

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