Does the rent to own contract grant ownership to the "renter", does the contract constitute an extension of credit under state law?
An exert from page I-2 in the 2021 GIR.
2. Extension of credit. Under § 1003.2(d), a dwelling-secured loan is not a closed-end mortgage
loan unless it involves an extension of credit. For example, some transactions completed
pursuant to installment sales contracts, such as some land contracts, depending on the facts
and circumstances, may or may not involve extensions of credit rendering the transactions
closed-end mortgage loans.
_________________________
The opinions expressed are mine and they are not to be taken as legal advice.