It's really important that you don't overpay for properties because you make money when you buy in real estate.Also, always read the terms and conditions of the auctions because the rules of the auctions vary between different companies, even different municipalities.  

Have a separate signed agreement that you will be responsible for half of the mortgage payment the entire time the house is owned and due 50% of profits from a sale. 

Another option would be to get a low money down payment loan, but then they would have to pay PMI, unless if it could be avoided somehow.Applicant 2 aloneThis applicant would definitely not qualify for good interest rates but they could comfortably put a large percentage down, e.g. 30% ,50% ,70% depending on what they are comfortable with.Applying JointlyIf both applicants apply together would they qualify for interest rates as good and what applicant 1 could get on their own?

I have contacted the city and they said that my plan can be done and meets all their guidelines, rules, etc.

@Joshua D.As a general rule, a valid contract requires something called "consideration."

Plenty of people try to get around these rules by creating companies with Thai majority directors or using usufructs to lease homes long term. 

You will definitely want to get residents on the new lease agreements so that you can manage the park in a professional manner and enforce rules.

Or instead of front-loading the payout, just do a 50/50 partial for the entire term of the note, which would lower the rate of return automatically to the note buyer?

It meets the 50% rule.

However, rules don't permit providing personal guarantee therefore you must use non-recourse financing, typically need 40% down.