I think that if there is no possibility of leaving then your options are limited.

Option 1) Have it fixed by a professional.

A underwritten lender Pre Approval provide sellers with greater assurance that the borrower can close as well as an option for accelerated closing date timeline.

They have been consistently late on payments (we’ve emailed them twice about it), they broke the lease regarding having extra dogs/cats and started a boarding business in our home which we informed them was not allowed as soon as we found out, as well as lacking in communication with them regarding things we needed to fix around the home.This is in California.We’ve just wanted to see what our next steps could/should be.

However the tenant is telling me they have personal issue and wants to move out of the lease or asking me options to break the contract. 

@Cody Miller,Or you can rent out your current place and find a new primary residence to get better financing options. 

I just don't know if I will be happy or feel safe living in some of the homes/neighborhoods that I would be able to afford paying cash for.I've heard opinions for everything from 10 year, 15 year, and the 30 year mortgage options.

I’m looking into this option too.

I’d struggle to come up with the 3.5-5% down on an fha or other low down options. 

They are now offering a damage protection plan  and  cancellation insurance with an additional optional fee cost to the guest.