First, it’s all in the contract. The buyer and seller agree to the terms. Usually Rent-To-Own means that part of the money paid every month goes toward the rent and part goes to the purchase of the house. Lease with an option means that you buy an option to purchase the house at a specific time in the future and you rent it in the meantime. There is also a “delayed” purchase, in which you actually make a downpayment on the house, and start paying toward ownership, but the sale is not recorded until a later date. This is generally done for tax purposes. Your financial advisor or a good real estate agent can explain the advantages and disadvantages of each, and should be able to help you choose a plan that works for you.