My name is Jim Jakubek. I am a real estate professional in Payson, Arizona. The banks generally look at
income, debt, and credit rating. I recommend you first talk to a good mortgage broker. Brokers generally have the most flexibility because they work with multiple lenders. FHA loans are currently available with 3.5% down. I have successfully negotiated a few owner carry contracts for purchase of a home in all of those scenarios the buyer would have gotten a better deal if they qualified for a conventional loan. With an owner carry generally 6% goes to Realtor commissions and 2% generally goes to closing costs and title insurance fees. If you put 10% down the owner will only get 2% of the purchase price plus a promise for future payments. Under this scenario, the seller is taking a high degree of risk that the banks consider to be not worth it.
If you cannot qualify for lending with a good mortgage broker, He or She should be able to tell you why and help devise a plan so you can can qualify for a home in the near future. It is my experience on an owner carry contract you will pay over market price for the home and get locked into very high interest rate. I believe you would be better of renting and buying a home when you can qualify.
Please call me and I will do all I can to help.
Prudential Arizona Reality