The Seller did not understand or misunderstood and thought that NONE Of these $60K in funds would be credited or APPLIED towards the $300K property purchase STRIKE PRICE.   

If you can't get someone with a 700 plus credit score within a few weeks of quality leasing the property at the right price I would not keep the property. 

The year's lowest priced small multifamily sale on Long Island is $430,000.If you want to househack a multifamily, you'll want to find ways to boost your buying power.

Just make sure they lock your rate upon pulling your credit, if they float the rate then go elsewhere, as that opens the door for a bait and switch.

Is lowest monthly payment your objective?

@Anastasia MonroTo achieve financial independence in real estate, focus on boosting savings, improving credit, getting pre-approved for a mortgage, searching for properties with high rental demand, researching local laws and regulations, building a team, staying educated, preparing for property maintenance and management, and being patient and persistent.

I have about 200k in equity and a credit score of 804.   

I'm interested in getting a conventional loan and considering using a credit union. 

Almost nothing penciled out and I wasn't interested in buying properties with negative cash or banking on the possibility of future appreciation.So I resisted buying bad deals and pretty much sat on the sidelines from 2005 to 2009 and continued to build up cash, contacts, my credit score, and my RE knowledge/education. 

Use a local bank or credit union for financing.