The difference between a lease option and land contract, mainly is the buyer's intent. A land contract is a form of agreement where the buyer is making installments on a purchase, almost like a mortgage with the owner holding the note. A lease option is similar but it is viewed as a form of rent where they have the "option" of buying the house but may decide not to. Both can negatively affect the credit of the homeowner because they can be viewed as overextended by a potential lender.
