First Time Home Buyer Loan for a Flip?

[Kathryn Tooles]

Hello BP world! I'm just getting my barrings in the world of real estate and have recently begun to look into purchasing my first home (for myself, not necessarily for a flip). But after digging deeper and finding that investing is the route I want to take, I wonder if anyone else here has experience with First Time Home Buyer loans they used to purchase a flip. This loan has my attention because of the minimal out of pocket money needed for a down payment. 

Under a county program, I qualify for an income-based first time home buyer loan with these terms:

• The loan requires 3% down payment  
• No mortgage insurance  
• The maximum loan amount is $417,000 
• Provides first time buyers with up to 25 percent of the purchase price to assist with the down payment and closing costs.

When it comes to resale values in these loans, there is a set price value when selling: "The Set Price is calculated as: original price paid, plus annual appreciation based on increases in the Area Median Income (average 2-3% annual appreciation), plus the cost of capital improvements made to the property.

Is anyone familiar with these types of loans? Would this kind of loan offer a decent return vs. say a FHA or 203k loan for the purpose of a flip?

Any advice on loan types that involve both a first time buyer and renovation cost with minimal down?

Thanks!

Kathryn