Help!! Is this mortgage lender correct?

[Ashley Sanchez]

So after receiving everyone advice about using the first time home buyer program and getting an FHA/Conventional loan, I talked to a mortgage banker today and she told me that I would not be able to do it with MFR if the property is zoned as a MFR.. she said the program is meant for SFR. Then I went on to tell that these homes are SFR as long as it's up to 4 units. She said that the property could be a SFR and I rented out the basement. She also told me that I could get a 203k or 201k loan and I could purchase MFR with that I just would not receive DP assistance. 
My dad advised me to stay away from this loan as it can have a lot of headaches between the inspector and the contractor not doing or estimating repairs. Also, he had his A/C stolen right after closing and it has been a headache with him to get the costs taken care of for replacement. Your thoughts or advice?