Try federal law, mortgage brokering, there is no exception for individual to individual, that does not apply at all in making loans to just any individual.

He required a $5,000 deposit and then a higher monthly payment with the "extra" applied to buying down the purchase price.If the buyer defaulted, he would keep the $5,000 deposit and he had the monthly payment that was higher than it would rent for.

This applies to anything.

My wife will be the only one applying for a mortgage.

A list of approved establishments can be found on the Department’s website; (this educational requirement is in addition to the 45 hour sales pre-licensing classroom hours)Upon successfully passing the examination, candidates must submit the following...Real estate salespersons and brokers both fall under the purview/regulation of the RI Department of Business Regulation ("DBR"): http://www.dbr.state.ri.us/divisions/commlicensing...As a practical matter, I would strongly recommend taking the first option, being a salesperson for two years before applying to become a broker.

If they get wiped out does that also apply for the year that doesn't say released?

The protections under SCRA apply to active duty members of the regular forces, members of the National Guard when serving in an active duty status under federal orders, members of the reserve forces called to active duty and members of the Coast Guard serving on active duty in support of the armed forces.

Also, stupid question: HOW do I actually go about applying for these loans?

It appears that while a unique number NNNNN may be assigned to each MLS server, a prefix XY is applied so that  AB12345 will be different from MN12345

I may be ALONE without my wife's income but I am not sure that would apply because her name would be on the property's title but I have heard of this sort of thing happening for buyers Pre-Housing bubble ~10 years ago (one income earner seeking a mortgage WITHOUT the other spouse's income).