You usually have to have some skin in the property in order for them to lend to you.

This structure first compensates either partner for skin in the game (kind of like you would otherwise need to pay for private money), then splits rest.On the legal structure, sounds like you'll want to set up an LLC, along with an operating agreement that specifies the different duties you each have, all the stuff you agreed on deal structure above.

Except for small local banks and credit unions that keep skin in the game (portfolio loans), doesn't the bank want the loan to go through so they can flip it over to Wall Street for securitization?

Depending on how well you know him I would also recommend thinking about having him invest some money in it too so he has "skin in the game." 

For those that comment whether positive or negative, you don't have skin in the game.

The existing tenants have mentioned separately (this is an up/down duplex) of smell of mold.This is not difficult to believe if in fact there are these obvious cracks on the home exterior.There is no doubt water/moisture is getting into the home and creating a condition for mold to grow.We had a structural engineer out to do our buyer’s inspection yesterday, report is due out later this evening (11/04/17).Verbal communication while on site, indicated a mutually shared concern over these cracks.The roof appears fine.A wall in the backyard will need replacing as the soil weight has almost pushed this wall over and it is only a matter of time before this thing comes falling over.Boiler may need replaced, windows as there is some clear cold.These are just concerns at this time but inspection report will lay all this out once received later today.I should have been a little smarter in not agreeing to a change in inspection objection deadline when it was presented by seller.My buyer’s agent and I should really have talked this one over, as I realize now that, it left us with only hours after inspection to come up with our inspection objection response and to be honest I will not have time to get bids for any of the extensive repair items which I do not doubt will be confirmed in the report received later today.Seeking any advice that you can give on the following: Would you proceed with purchase of the above detailed home?

Some are even building HUD homes with 2x6 exterior walls, radiant barrier roof decking, a full house moisture barrier, low-e vinyl windows, extra roof/wall/floor insulation and high efficiency HVAC systems.

Essentially your “skin in the game” so it cannot be a loan from a bank, friend, family member, etc.

(we will both put even amount of down payment -skin in the game)  Can we both apply for the loan or is it better to have one person finance? 

The buyer of the house should expect some continued movement of the house as it ages, but can greatly reduce any future movement with proper maintenance of the property, including keeping soil conditions consistent, not allowing excess or lack of moisture.