You will want to consult with a knowledgable mortgage professional who is well versed in credit restoration prior to signing. Most L.C's are written with baloon terms, meaning after aprox. 3-5 years your owner financed balance will come due. If you are unable to finance the property at tha time you will jeapordize your down payment and any amount you've paid down on the principal. The seller can foreclose on you at that time and take the property back from you. I've seen many "shark" like investors require large down payments and prey on buyers, hoping they will default on the land contract. If you feel comfortable with your ability to obtain financing to pay off the contact in the allotted time and you are comfortable wiht the terms then it might not be a bad idea. Personally, I would rather see you lease with the option to purchase. The reason being, once you have improved your credit score enough to qualify for regular financing you will be able to purchase any home you want...rather than being limited to only homes available for sale on contact. Who knows, maybe in the amount of time it will take you to improve your credit you will find a home you like better. Most homes being sold on land contact are being sold at a premium as well. You might as well have me or someone like me help you get your credit in order, then once you able to finance a home we can find you a good deal on a home, with good terms, at a good interest rate. Just my two cents...
Feel free to call or email me if you would lik eme to review your credit with you and let you know what needs to be done in order for you to finance a home.