I would have to disagree with Mr. Moore . I have sold quit a few homes by lease option. Although the interest rate is higher than a traditional loan, it is a win/win for both parties if structured correctly. The typical lease option we do is a 2 year lease with an 18 year agreement for deed. The Buyer gets credit for a portion of the payments during the lease and the Seller continues to finance for the remaining 18 years . The Buyer can refi or payoff at any time no penalty. Or they can elect to stay with the current plan.
The only problem is finding enough Sellers willing to hold a note for 20 years . Tough but not impossible.