Which financing option allows low and moderate-income buyers to lease a home with an option to buy?

The financing option that enables low and moderate-income buyers to lease a home with an option to buy is the Lease-Purchase Mortgage Loan. This arrangement specifically allows tenants to lease a property for a certain period while also providing them with the right to purchase the home at a predetermined price during or at the end of the lease term. It serves as a viable pathway for individuals who may not currently have the full financial resources to buy a home outright but aspire to do so in the future.

Other financing options mentioned do not include this specific lease-to-own arrangement. For instance, a Leasehold refers to the right to use or occupy property but does not inherently offer a purchase option. An Insured Mortgage typically involves loans backed by government insurance, designed to minimize risk for lenders, and does not pertain to leasing or options for buying. A Junior Mortgage is a secondary loan secured against a property, meant to finance additional borrowing, rather than facilitating a lease-to-buy scenario. The Lease-Purchase Mortgage Loan stands out because it effectively bridges the gap between leasing and home ownership, making it particularly helpful for buyers with limited financial means.