If you're buying a house on land contract, is an initial deposit of 10% usually required?

My friends cousin is selling his house. I was hoping to buy a house in June but that didn't work out w/the realtor (I only want a land contract, not a mortgage for many reasons). He is showing me the house this weekend-although I have been in it numerous times-and we're going to discuss the contract.

As of now I can only put down 5% since the house is marked higher than my original plans. What kind of agreement should we work out and what should I put in the contract for my own safety?

*Can someone explain “balloon payments” to me?

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