If they were insured with Cal Safe they are both dramatically underinsured and a single neighborhood would deplete the programs' reserves. 

It will depend on the bank and their threshold / programs they are participating in. 

I'm also a licensed mortgage broker with a lot of fix-and-flip programs, including some that require as little as 10% down on the purchase price, and provide 100% of the rehab funding.

By doing this we qualified for a larger mortgage because we could use the rent from the other tenant to qualify and there are better lending programs when it’s “owner occupied”.  

If you choose to go with a first time home buyer program, you would need to identify all the terms and advantage of that as MANY are available.

See the chart from Fair Isaac Company (FICO) below: FICO Score Pct of Population Default Probability 800 or more 13.00% 1.00% 750-799 27.00% 1.00% 700-749 18.00% 4.40% 650-699 15.00% 8.90% 600-649 12.00% 15.80% 550-599 8.00% 22.50% 500-549 5.00% 28.40% Less than 499 2.00% 41.00% Source: Fair Isaac CompanyAccording to this chart, investors should use corresponding vacancy+tenant-nonperformance factors of approximately 5% for Class A rentals, 10% for Class B and 20% for Class C.To address Class C payment challenges, many industry "experts" are now selling programs to newbie investors about how Section 8 tenants are the cure.

This has also allowed us to provide some excellent incentives for our investors, locking in long term debt currently at 3.75%  through our in house financing program.

I'd have suggested a down payment assistance program for your first purchase.

That said, not all companies have these programs.

I think once you get more than that, you would need a more expansive program