I agree with Jon that it will be difficult because not only are the closing costs higher than $5,000, a seller will need to own the home free and clear in order to sell to you on a land contract because virtually all mortgages these days have a due on sale clause. In other words, you might be able to find a seller, by owner to sell to you with $5,000 down but that seller could be in trouble with his bank afterwards because that bank has cause to call his loan due. The sellers problem eventually becomes yours because the bank can foreclose on the title holder and get the house back. My advice is to make sure the property is free and clear that you are buying and your best bet is to find a new home builder who has a spec home that has been on the market for a while. Otherwise, have you pursued trying to get approved through a lender that is good at helping people with bruised credit get qualified? Contact me if you want to try that.