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how exactly is a lease purchase diff from regular purchase of a new home?

besides the fact, that at the end of lease purch agreement one has to the option of moving out, what else is the difference?

Public Comments

1. Many ways: Monthly payment: Lease-purchase is typically equivalent to rental rates, and thus a lot lower than a mortgage with PITI. Rent credits/Equity buildup Rent credits are negotiable, but typically are much greater than the equity buildup in the first year or two of an amortized mortgage. Tax advantages No tax advantage to a lease-purchase. You're leasing. With a regular purchase, you can deduct taxes and interest. Ownership In a lease-purchase, the seller retains ownership of the property until you purchase. In a "regular" purchase, the deed is in your name. Option fee/downpayment In a lease-purchase, you can negotiate the option fee. In a mortgage, you can search around for the best mortgage, but you comply with whatever standards the mortgage company has. Hope that helps.
2. There are differences between a lease purchase agreements and a lease option, several which a lot of people don't know or understand. A lease purchase agreement actually requires the property before the agreement (contract) comes to an end. I am not an expert but have looked around to see if I can find a good answer for you. I found that a lease option is defined as where a person has the option of to purchase the property, so lease purchase is different. If you want to know the actual difference between lease purchase and a regular purchase of a new home then go to http://www.leasepurchasemadeeasy.com/lease-purchase-agreement.html - they provide more information about the differences. I hope that it helps, it looks very simple to understand.