Lease Option Agreement

[Alejandra Macias]

My husband and I came across an excellent opportunity to purchase a single-family house which would be our primary residence, of course, we will do some house hacking. We currently don't have the best credit to qualify for a $250,000 mortgage. My generous and loving mother offered to do a lease option for two years, and at the end of two years, she would sell us the house for $50,000 more as her profit. She and her husband have excellent credit together. She asked, how would they earn the $50,000 in two years if the house would not be entirely paid off. I was not sure how to answer that question. Would someone be so kind some shed some light on this, and inform me more about a lease-option? Thank you!

Details:

Purchase Price: $250,000

Downpayment: $10,000