@Izraul HidashiIn general:Investor or certificate holder -> underwriter (creates the certificate) -> Depositor (issuing entity) -> Seller (purchases note) -> Originator (or creditor that created the note) -> borrower

As mentioned, we "openly and notoriously" record the deed for the world to see so there is no hiding things from the bank (which could be construed as fraud not to mention poses many other risks for creditor liens, etc.) 

I am considering purchasing a seller financed home and want to know what the benefits are to the buyer (me)? I can get traditional financing through a bank but was wondering if I go the "seller financed" route would ...

Then offer the creditor a percentage of this amount as settlement in full.  

Another common problem is poor due diligence—jumping into deals without verifying the borrower or collateral often leads to future regrets.I’ve also seen over-leveraged borrowers cause trouble, prioritizing other creditors over private lenders.

Of course they are going to have bad credit or they would be looking in a better area.Another thing you may want to consider to drive more applications is to not charge the application fee.

The DSCR loan would allow you to qualify based on the rent you are collecting and get up to 75% of the value (175 x 0.75 = 131.25k, minus 20k payoff and closing costs.You could get a line of credit or a bridge loan against it to borrow money, but it would be higher interest.

Again even if you have great credit as you start to add more credit cards, mortgages, auto loans to your credit you can also be viewed as "High risk" due to Excessive trade lines in credit or higher DTI - debt to income ratios. 

I won't be ready for my own investments until, I fix my personal credit and build my business credit. Or

I’ve read quite a few posts about foreign investor financing but most seem to deal with non-citizen investors without US credit or personal tax filings.