In your scenario, (check @Jerry Padilla's link to confirm) if the goal is to minimize down payment, FHA might be the better route. 

You should put a copy of that with all of your offers and hopefully get the owner believing you can close.Another thing you should consider doing before you start is finding an office location that is convenient and has a minimal of distractions.  

Before I bid I reviewed the PCR, which indicated no issues whatsoever. 

@Stephen Bagnani, I reckon "Be the Bank" is a bit different than "Investing in Notes", but nothing in your post indicates where is your premise of "too late" is coming from?

Everything I've read with regards to Dodd Frank on 'advertising' for private lenders seems to indicate that the advertising rules only apply if you're borrowing over $5M or if you are commingling funds and forming a security. 

From your comments, I get an indication that sticking to rentals for our area is safer, is that correct? 

@adam johnson thank you for that very "full" answer,  my gut was feeling much like this was a minimal purchase.  

Your equity seems minimal. 

I have minimal bills and responsibilities, just me and my dog.

Also tells me the way to make it legit is to apply for a legal non-conforming, but gives me no indication as to how successful that process might be.Has anyone gone through the process in independence?