If the houses are all that bad, then you’d really be unwise to get involved in trying to own one. You couldn’t sell it again for the amount of money that you’ll be paying on it. As time passes, you’ll have to spend money to keep the place shored up. It’s one thing to try to restore a fine old house that has good bones, but this place, you say, was crappy from the first day. It’s going to be a money pit.
This is just a very bad idea. Consider yourself lucky that you’ve had nine rent-free months to get your life together and refresh your savings, and forget this “deal.”
Even if you had the down payment, a bank or mortgage lender still might not place the loan. They do an inspection beforehand, and poor condition, structural problems, or serious building-code violations make them reject loans.
Count your blessings.
To be able to own the house and get it paid off within just a few months would finally put me in the driver's seat for once. And if/when I purchase it, I already have plans to start remodeling the place, on section at a time, and bring it up to code.