In this business, like most other businesses, you have to be thick-skinned, assertive and inventive.

In the past there were more options to get creative with seller financing etc to put down less than that, but now the primary lender in general won't allow this as they want to assure you have sufficient skin in the game.

You just need skin in the game

If I don't a particular agent because of skin color, sexual orientation, or whatever, I may decide to offer them less. 

You need to be able to turn a profit, the property typically has to be in an urban or suburban setting, you need skin in the game (down payment) & in most cases decent credit.

Paying that much interest makes my skin crawl ha...

The reason for this is to prevent people from getting a good deal, immediately refinancing, pulling all of their cash out, and having no "skin in the game".

In theory you could approach the neighbors before going under contract but they will take your inquiry more seriously if they know you have skin in the game.

Would depend on if you have enough skin in the game or other collateral

Insurance has no skin in it since they don't cover mold, only have duty to defend.