I suggest you connect with a very reputable lender and way all your options on how to finance the purchase of a property in your size and price range.... It is hard to tell you what a seller will accept, but for a lender it is relatively easy to explore all your options available based on your income, financial situation etc.
I never ever recommend to any of my buyers not to contact a lender first, get detailed information, about what options and various mortgage types they may have, and then get a written pre-approval letter from that lender, before even looking at properties.... Get the financials straightened out first, then start looking for the property that fits both your financial capability and your needs...
Good Luck to you!
Edith YourRealtor4Life and Chicago/ Northern Illinois Connection
Working always in the very BEST interest of her clients