A 10% down payment will be nice but usually it is quite low - more like 2 - 5%. Since you are doing owner financing (land contract or subject to), you will not have immediate closing costs so that is unnecessary. The title only transfers when the balloon payment is reached. The interest rate should be adjusted based on their credit report and amount of down payment. This will offset your risk.... more
I strongly recommend you holding out until you can support financing another home through an experienced lender. I have had many past clients speak of going the route of lease-own, owner finance, etc. STOP! what you are aiming for... There is a great deal of risk when going this route. If you would like more information in regards to these routes please feel free to contact me directly. Knowledge is power and in today's market there are many individuals out there looking to take advantage of these programs in the wrong way.
Keller Williams Realty
Real Estate Consultant
3xUS Army Veteran
Email: firstname.lastname@example.org... more