But ya- you should absolutely find a tax professional (preferably one licensed with letters on their names) who specializes in real estate. 

It's not an offer, it's a Letter of Intent.

What if we did an interest only balloon payment.  

They usually provide you with a loan letter that states their average time for then to close on that type of loan and the maximum amount you qualified for.  

Don't forget the limited power of attorney, hybrid and proposal cover letter with disclosures.So........they are the factors of your first virtual deal....

Here's exactly what I'm looking for, stated income, no tax returns, no letter from my mom.

The tenant seems to just want to walk away; she says she's had alot of harrassment with letters, phone calls and people coming to the door trying to buy the house off her. 

You should be able to get a loan letter that states the average time it takes to close your loan and the maximum amount you qualified for.  

I would like a higher rate and a 5 year balloon with a 10 yr amortization and while everything is of course negotiable I want to understand what is a common range to terms.

Offer a good down payment, @least 10yr term, low rate(enough for you to cash flow), no balloon payment..The beauty of seller financing transpires from creative need...Find the best solution...GL