I think you need a new lender. It sounds you have been approved for an FHA loan which requires the 3.5% down payment you mention. The problem of course is you don't have it. You need $5,250 "down" PLUS your closing costs. Did you actually speak with someone??? You can have a down payment "gifted" according to FHA guidelines and ask the Seller to pay for your closing costs. Was any of this discussed???
Maybe a new lender who will consider your situation and offer solutions is in order.
What property are you referring to? Without knowing the property, you are going to get somewhat aimless answers.
Unless the seller is offering owner financing, or imposes their own requirement, the seller typically has nothing to do with how much of a down payment you would need.
Summerville is in an area that is eligible for USDA financing, so it's possible that you could purchase without any down payment as long as your household income isn't too much. You can check eligible areas and income limits for USDA financing at http://eligibility.sc.egov.usda.gov/eligibility/welcomeAction.do - USDA financing is 100% financing in rural areas/communities, you can even include the closing costs into the new loan amount if the home appraises for enough over the sales price, and there is currently no monthly mortgage insurance so the overall payments are cheaper than with an FHA loan.... more