Why a buyer want a lease option?

[Ari Hadar]

Why wouldn't they(buyers) rent and after they fix their credit they buy an house without a lease option? 

[Mary Cronin]

Any number of reasons ... 

Most common: 

No money for down payment. LO with rent credits give equity = down payment. 

Bad or no credit and can't qualify for a loan - LO allows them to gain equity while renting and either fix or create credit. Just renting doesn't yield equity.

Investor wanting to minimize cash outlays - one could buy multiple properties with LOs and maybe only 1 in normal purchase. 

Property has no equity - so down payment would be required with bank loan - gain equity until you reach 20% then finance purchase. Often a "sandwich" lease option - investor LO property from owner at less than market rent and in turn LO property to end buyer at market rent. (overpriced properties, foreclosure properties, properties that went down in value so mortgage too high).

Less common: 

Buyer has liens and can't have property in name. (Child support, judgments, IRS liens, etc.)

Buyer doesn't want property in own name - pending LLC or trust formation, or just because. Maybe more sensible than putting property in ex-spouse's name (yes I know someone who put at least $6M in ex-spouse's name - and it worked out well - in spite of what it sounds like. Investor had multiple properties, multiple businesses, multiple bank accounts, and feared multiple lawsuits over at least 3 continents.)

Buyer wants to be invisible.