Suggestion on loan rates for mortgage note

[Ed Long]

Was curious what type of rates/terms folks are getting for holding a mortgage.  This is the overview of the deal.

Property sell price $325K, (fair price, could resell today at this price)

Down Payment: $125K

Loan Term: 20 year amort. callable in 5, no prepayment penalty

Loan is for $200K.  Buyer is asking for a 5% rate.   

Buyer is self-employed with good credit (750) and tax documentation.  Banks are not lending due to his self employment (C-corp) status, according to him.

Looking for some insight into standard closing cost / fees (on top of the legal, paperwork items) and thoughts on pre-payment?  Perhaps a penalty if it's prepaid before 2 years?  What would a reasonable loan origination fee and penalty fee be?

Thanks!