I'm buying with owner financing and have a few questions.

[Kevin G Kempton]

I am in the process of purchasing a home using owner financing. We've agreed on a 30 year mortgage with a 5 year balloon and 12% down. I have chosen to go this route because I'm self employed and getting a conventional mortgage with a lending institution is not an option at this point. I am looking for some advice. If we use a loan servicing company that does credit reporting, will it improve my chances of finding a conventional mortgage over time? Will the equity in the home count toward the down payment if I refinance with a lending institution at a later date? How is the value of the home determined by a lending institution? What things should I be aware of getting into this situation. Any advice would be greatly appreciated. Kevin