Creative financing

[John Nisewonger]

So a family member just inherited a house (My wifes grandmother inherited the grandmothers sisters house when she passed away) and she wants to sell it.  My wife and I would like to buy it BUT she only wants around $50,000 for it.  I am having problems finding anyone to finance it because of its low purchase price. 

My mortgage broker says they only finance $50,000 loan min. with 20% down making a purchase price having to be around $67,000 since its an investment property.

I recently let some other properties go that I found on the MLS because of low purchase prices as well.

Am I better off trying local banks?  i tried to get her to finance me with a balloon loan but she didnt sound interested.  She wants her money all at once.  What type of loan should I be asking for?