<prompt> Human: I will try to keep this as concise as I can.Basically I was looking to buy a house a few months ago, but my credit was not fully established from the credit card I got myself. Now my credit score is 668. Its a single card, 300 limit, Ive made all payments on time, no exceptions.Based on the way my income was calculated for a tip subsidized, seasonal job that Ive carried for the last 5 years, my monthly income was calculated as 618mo. In reality it was at least 1000.00 more excluding tips. Obviously I did not get approved for a mortgage loan because of this and not having established a credit score. So, I was still interested in moving, but from apartment living, and into a house. I found one online, toured it, and it turned out fantastic. Home-owner lives out of the country and has the neighbor doing her showings. Neighbor informs me that they havent rented it or lived in it for 5 years. So I ask the owner if they are interested in selling, to which they reply yes with the potential to owner carry.I ask them how much they want, and they inform me that they want 189,000 which is at least 40,000 more than the house is worth I know this because of the extensive research I conducted on com parables in the area both myself and by a real estate agent additionally they want payments to be 1,000mo 3 interest accompanied by an affordable down payment likely under 10,000. Owner will carry for minimum of 5 years and no penalty for early payoff.So, I counter offer. 149,500, 875mo 6 interest 5,000 down with the same terms as before.Here is her reply that I dont quite understand:For a straight sale where you have to find your own financing, my firm price would be in the neighborhood of 165,000 - a little less than 10,000 from the assessment value of 155,200. - But for an owner-carry, you will find that you would be much better off paying 185,000 at 3 rather than assuming even the lesser sum of 155,000 at 6 over 5 years of a 20 year amortization. I dont really understand how thats possible if after I get a conventional loan from a bank my principle will be 30,000 dollars more this way. Her plan of action was this:Put down 5,000 for a 5-month rental period to the end of January, 2015, with an option to purchase for 180,000 3 payable 1,000 or more, monthly, over 5 years, commencing Feb2015.At the end of the initial 5-year period or earlier prepayment, you will have the option of refinancing the balance for a complete payout to me, at which time, all interest amounts owing under the owner-carry will be waived.Okay rpersonalfinance, which is the smarter choice, and what should I do. Sorry for the wall of text. I appreciate all of your minds and your willingness to help in advance!Edit: Thank you to everyone for setting me straight!  <response>: You earn 1000month. Forget about all this talk about financing. You cant afford this house. 