Van 0 Report post Posted January 21, 2003 What is the difference btween lease option and owner financing? What is the safest for the seller? Share this post Link to post Share on other sites
MichaelC 160 Report post Posted January 22, 2003 Seller financing is an actual sale of a property. The homeowner is acting as the bank and providing the loan for the purchaser to buy the property. Instead of you needing to make payments to Washington Mutual each month, you would make your payments to the seller.A lease option, of course, is not a sale but, rather, a lease with an option to purchase. There is no financing required when the Lease with Option to Purchase Agreement is signed because title does not change hands. If, and when the option is exercised is when you would need to concern yourself with obtaining financing, which may or may not be seller financing. Share this post Link to post Share on other sites