Initial beneficiary is the seller and the this can transfer to buyer at closing.  

The home was built in 2006, great neighborhood, close to the highways, close to everything new that is being built, close to a military base.

3) Your $250k with 30% down => about $750k (you also need funds for closing costs, taxes, etc.)

It's probably going to mean paying points at closing, a high rate, and a serious pre-payment penalty (like 5 years). 

Meaning that if you fund a $5K EMD and then decide not to close you lose the EMD, or you pay for an inspection up front and risk missing out on the deal while you're waiting for the report.

With the Chuckawalla Valley State Prison (CVSP) slated to close in 2025, do you think Blythe, CA would still be good city to invest in?

With $50k, you likely have enough to get started, especially if you target lower-cost markets or use a strategy like house hacking.

Surprisingly, these homes that once sold for $7,000 are now selling for close to $1,000,000 and it doesn't seem as though the rate of appreciations is decreasing anytime soon. 

I believe United FCU is best. 20% down, usually a 10yr term (they offer a longer term though), and an interest rate that's pretty close to the current average for conventional loans. 

All lenders have strengths and weaknesses, staying close to them is the only way to learn what each of those are.