You may want to consider doing a paid coaching/mentoring program that will help you out all the pieces together.  

Red flag does not refer to derogatory credit, so if you heard that from a loan officer they must be new and probably don't know much.Most loan programs require some kind of waiting period for anyone who's had a BK. 

Are there any realistic options besides an FHA and loan program that requires us to live in the property for a year?

I helped them apply for a rental assistance program and I will probably forgive one months rent to help them out.

It seems that the program should be beneficial for both tenants and landlords though.

I'm looking specifically for one that has good programs for first time buyers with low downpayment on multifamily properties. 

I wonder if that financial risk is enough grounds to require the vaccine.I've been thinking about using a motivator like an optional opt in program, such as a one time dollar amount rent credit if you can prove all eligible members of your household are vaccinated.

Having said that, there is a loan program/approval process that can improve your chances that I just learned about yesterday.

There are programs thru some states, cities, or counties that will give you a grant to cover closing costs and downpayment.

Luckily, I'm a first time home buyer so there are a lot of great programs out there.