Home owners that had foreclosures a while back are trying to secure mortgages again.  FHA reuqires that foreclosure owners wait 3 years until they purchase a home.  This includes short sales.

One of the biggest obstacles in real estate today is getting financing.  I have several clients who would be in homes today if I could only secure a mortgage. 

Seller financing, lease/options and lease/purchases can sometimes work.  However, there is a big problem:  The seller always dictates the rules on this.  The buyer loses a boatload of leverage when he/she asks the seller to be their bank.  I always push people to get traditional financing if at all possible.  You may get the seller to come down 3% OR to do some seller financing.  You won't get them to do both.  The price reduction is much more likely to happen than seller financing.

Asking for seller financing concessions is like going into a fight with a butter knife.  I'd much rather have a sumurai sword (a bank committment letter)!

So, work on that credit, job history and income.  Get a traditional mortgage and everyone's happy.