Stay away from the thought of a lease option.
This market is soft especially in that price point, my suggestion if you are interested in the home make an offer and negotiate to see where the seller's bottom line is. Its amazing how much more sellers are willing to negotiate now. My general rule is 5-10% under to see where you can meet. In order to find the real price-range I would have to personally view the property and run comps.

NEVER do a rent to own unless you hire an attorney to tell you what you are in for in the contract. Usually they are overpriced and you could loose your entire investment if you miss a payment or two.

Save, wait, fix any credit problems that you may have. It's always a cycle, and soon enough 5% down will be a reality again and hopefully you may be able to buy your home then.

http://wilmington-northcarolinarealestate.com/

Nobody can predict what the market will be for a home in 6 months. If they could, we'd all be making a million, buying up all the good deals now. Nobody.... Realtors, investors, or homeowners,could have predicted the downturn in the housing market that has occurred in the last 6 months in the Triangle area.

Are you thinking of buying this home? renting it to buy? Do you have a lender?
Just some things to think about.
Linda Jandura