Posted by JohnWe (NoCA) on January 20, 2000 at 12:38:12:
First of all, if you can get a 50% rent credit go for it!
As far as the $10,800, This is considered part (or all) of the down payment when you buy it at the end of 3 years.
The underlying mortgage doesn’t have much to do with anything. At the end of the 3 years, you’ll probably get new financing. If you keep your credit clean for 3 years, I can almost guarantee you that you won’t have problems getting a loan unless you have some serious problems (bankrupcy, foreclosure, etc.).
Think of a land contract as a seller-carryback with the seller holding the title to the property. You pay the seller like you’re paying off a mortgage. If you do it this way, MAKE SURE TO RECORD YOUR CONTRACT! I would also setup an escrow with the title to make sure the seller doesn’t disappear with the title to your property!
Hope this helps.