You should consult with a qualified professional before acting on any of the opinions shared in this post!!!

She might also qualify for the 121 exclusion 

A Bank statement program would do wonders, 10% down minimum is industry standard, if you have a solid credit score,15% down will get you really good terms, however you still need to qualify DTI wise.Best of luck!

If a buyer has the financial capability to handle possible temporary negative cash flow and ability to refinance in the unlikely event the note is accelerated, and the seller has the ability to do a background check on the buyer and reach an intelligent decision, then the benefits of a real property transaction without the expense, time and qualifying necessary to obtain new financing and perhaps the benefits of a lower interest rate can successfully accrue to the benefit of both parties to the transaction.If the buyer is an undercapitalized inexperienced recent “graduate” of a guru program and the seller is willing to sell to anyone, whether breathing or not, then the transaction has a high likely hood of ending in disaster.When both parties are knowledgeable and understand the risks of the transaction, nobody is “taking advantage” of anyone else.  

Could we qualify for loan for septic and permits and just live in apt in garage until a much later date for manufactured home.Any thought suggestions or advise would be helpful. 

But something just did not add up with those guys ( and they were AZ based and slick as all get out) But to easy to approve me just send 10k for due diligence. only somewhat related but BiggerPockets really needs to acknowledge a new category of lender that falls in the Non-QM space (any mortgage thats not qualifying under the Agency QM rules - including DSCR lenders but also many established non-bank lenders that focus on pretty standard mortgage products that are part of the established Secondary Market and Finance Infastructure). 

If you qualify, and the numbers work, I don't think there's a better option out there! 

Stay away from the lower income areas, typically we see properties more distressed, more challenging situations with tenants and late payments etc, we manage around 400 units and from experience its worth spending a little more money to be in a better part of town with more qualified tenants.

Some DSCR loans can lend to intervivos trusts, so that could be a good option if you want to qualify for the loan based on the property's income.

Start by doing a house hack when you can qualify.