Land leases can be tricky, because you don't own the land underneath your home. If you can afford it, you should always seek properties that offer the land on a purchase-basis, and not a lease.
While the prices of land-lease homes might be enticing, you don't build the same equity in your property.
For example, there is a condo complex in North Santa Ana where units are up for sale at $90,000. However, the land lease on this property is $1000/month, with an annual increase. While the sale prices looks inviting, spending an additional $1000/month on top of your mortgage can make a big dent in your monthly budget!
You would be better off finding a place on owned-land for a slightly higher price point ($160-170k); financially, it would take about the same income and credit score to qualify for the purchase!
Please let me know if you would like any further assistance!
Nicole Fedorchek, Realtor