The key is not to get too sucked in where you are wasting a lot of energy and time.It is probably easiest to just send them the requested letter.   

Nothing is bullet proof, but barring illegal or egregious action on your part you should be fine. 

@Kole Kingslien  Guidelines for land contract:- Payoff of Installment Land Contract Requirements When the proceeds of a mortgage loan are used to pay off the outstanding balance on aninstallment land contract (also known as contract or bond for deed) that was executed within the12 months preceding the date of the loan application, Fannie Mae will consider the mortgageloan to be a purchase money mortgage loan.The LTV ratio for the mortgage loan must be determined by dividing the new loan amount by thelesser of the total acquisition cost (defined as the purchase price indicated in the land contract,plus any costs the purchaser incurs for rehabilitation, renovation, or energy conservationimprovements) or the appraised value of the property at the time the new mortgage loan isclosed.

Unless there is something on the line for me, I am not going to be willing to invest my energy to learning about it.

So it usually seems IMPOSSIBLE to find the time, energy or money to pursue it further, but we have both decided to dedicate ourselves towards the long-term goal of transitioning into successful, full-time investors.

Congratulations, great timing since you probably dodged a bullet holding high risk SFH investments.

So sweet and tender and happy full of energy when they first start out.

I wouldn't waste energy trying to guess what is going on in the background.

So my question is do I bite the bullet and refinance now to a 30 year conventional loan?

Given all of the advice and some more thought, I may just bite the bullet and buy in CO.