LEASE OPTION or LEASE PURCHASE?

[Del Kelley]

From speaking with a couple of mortgage brokers, the option fee cannot be used as "an acceptable source of borrower funds" as stated by HUD.

Could the the tenant / buyer sign a purchase contract with a non-refundable earnest money deposit? The reason I ask is that earnest money deposits can go towards the down payment. I'm trying to set the tenant up for success when they go to get financing. Please chime in if you have any success in getting the tenant / buyer to the closing table. 

[Jenifer Levini]

Sometimes I read a bunch of non-lawyers trying to give each other legal advice and realize how dangerous this website really is! Jeez!
@Del Kelley, You sound like someone who is trying to get in on real estate deals without doing the required education to become a realtor, or the footwork to become a wholeseller... Trying to get people to pay you when you dont have even a slight understanding of contract law or how a real estate transaction works.

And, most likely the dozens of realtors in your neck of the woods who see your post here, will report you, for attempting to broker deals without a license.