An agreement where individuals lease a manufactured home with the option to purchase it at the end of the rental period characterizes this arrangement. Payments are typically structured so that a portion contributes towards eventual ownership, while the remainder covers the cost of occupancy. This differs from traditional rental agreements, as it incorporates a potential path to homeownership for the lessee.
Such arrangements can offer an accessible route to homeownership for individuals facing financial constraints or credit challenges that impede obtaining conventional mortgages. The appeal lies in the opportunity to build equity over time, potentially leading to a more stable housing situation. Historically, these agreements have served as an entry point into the housing market for individuals in underserved communities, presenting an alternative to perpetual renting.
