An alternative financing option that allows low and moderate income homebuyers to lease a home from a nonprofit organization with an option to buy, and with each months rent payments consisting of PITI payments on the first mortgage, plus an extra amount that is earmarked for a savings account in which money for a down payment accumulates.

Unrecorded Land Contracts can be refinanced into the borrowers name after proving 12 months of ontime payments as long as the borrowers credit score qualifies them for such a program.

After 12 months of on time payments, if there is enough equity in the property, you can even take cash out on the "purchase" side of the lease-purchase transaction. This is because several lenders consider this a refinance transaction.

Lease purchase programs allow someone with less than perfect credit to enjoy the benefits of homeownership while building better credit.