Whenever you go into a business relationship, you need to have an exit strategy.
the mentoring idea is a great one too.
Hope it works out well for you.
I agree with Brett that this sounds like an FHA loan, and if that's the case the bank will be looking to see that you're going to occupy it.
I also agree with Sarah and Kathy that if you're seriously considering buying this in a partnership situation, you really should discuss this with a real estate attorney first. The advice you get will more than offset the expense. If you need a referral for a great RE attorney in CA, I am happy to provide one.
Hit the brakes and look for a mentor or mentoring group and then keep asking questions until you stop getting answers! Identify the most common mistakes a "newbie" makes.
Reviewing these sites may be a good idea so you get an appreciation of what you may not know:
Never mistake "motion" for "action"!
In this situation, I think it would be better if you borrowed the money from the other party, and paid him above-market interest. Or just wait a couple of months until you can afford to buy by yourself
This sounds like an FHA loan. If it is, you will be required to live in the property.
$300,000, You have all the risk, get $6500 more and buy this yourself, then you have no split. This guy you are partnering with gets a hell of a deal if he gets 50/50 or even the 30/70 split, you get stuck with all the risk. If the property hits the skits you lose $3000 and you get held to a $300,000 loan, he walks with a mere $6500 lose. Please look at this business situation and see the sucker clause you will be signing into. Why is all in your name? He has bad credit, them guess what, if you hit hard times and you turn to your partner for help, he can't help you he has no credit.
This looks like a one person deal, hell if you need a partner like this, I'll go 50/50 with you and give you $10,000