Some credit unions will go to 85%-95%, but there are just a few that will do 100% loan to value! 

You don’t need necessarily need to build credit.

You could also get a line of credit for about $150k (you should be able to borrow 75% of the value.)The reason I suggest this is…1) you save $40-$60k in selling costs. 2) you have a lower blended interest rate (2/3rds at 3.25% and 1/3rd at 7 or 8% instead of the whole $500k at 7 or 8%) saving you another $1k/mo in interest. 3) you only pay interest on that $150k when you actually use it, not from day 1  Unless you hate this property, or want to buy something you can’t afford without selling, that would be my plan.

I just do not understand the need to add "benefits" to the programs  that are just not real. 

@Stefano Vrolijk it all depends on your credit history, whether you have an SSN/ ITIN and how much you can put down.

Its a very poor situation for the original owner to be on the mortgage for years and years without the benefits of ownership and the control.  

Get a free report from the credit agencies.

If you have some capital, income, and decent credit, buy a 4-5 bedroom house and rent bedrooms. 

On the flip side, if you've got a bunch of Section 8 tenants living in a building that's in a neighborhood where a lot of the tenant base has good jobs, high credit scores, and are generally reliable people, you've got the most risky tenants in that tenant base and that ain't what ya want.

Then i would probably want a CPA firm that has specialist that know the state laws for my portfolio so I can benefit even more.