In a comparison between a land contract and a purchase money mortgage, which statement is true?
1) A land contract involves the seller financing the purchase of the property, while a purchase money mortgage involves a traditional lender providing the financing.
2) A land contract and a purchase money mortgage are two different names for the same type of financing.
3) A land contract is only used for commercial properties, while a purchase money mortgage is used for residential properties.
4) A land contract and a purchase money mortgage both require a down payment of at least 20%.