1% down for first time buyer in Minneapolis, is it possible?

[James Shinn]

Hi All, 

While my initial plan is to purchase a small multi-family using a 203k loan, I have seen some posts here on BP regarding some lenders issuing 1% down loans. Can anyone in the Minneapolis area recommend a lender who offers something like this? On that note can anyone recommend a 203k lender? I just spoke with someone at Kleinbank who was very knowledgeable on more traditional loans but while the bank will write 203k's she has never done one and strongly recommended for me to stay away from them. Am I correct in thinking that if I can find a decent property that needs few repairs it's better to do those out of pocket and go with a low money down FHA loan but if I find an uninhabitable home in the right area that I'm stuck going with a 203k?

Would sharing credit score, income, and debt help frame the question?

Thanks!