My understanding is that Fannie Mae offers the Homepath loan program which looks very appetizing with 3% down and no PMI.  

What sort of certification is required?

Different lenders have different programs.  

Some state/federal program then pays off the house for him.

The program requires quality health and does not cover medical claims by avoidable actions such as drinking and driving, children out of wedlock, getting in a bar fight while drinking.  

Many of these give sales pitches, gurus try to sell their products or mentoring programs, or someone tries to get you to invest in a REI Fund by a group of people pooling their money, for some REI and promising an unrealistic return.

If you are a first time buyer looking for a home to owner occupy in our area be sure to check out the first time buyers programs.

FNMA and Freddie loans are non-recourse and typically allow borrowers to apply for a FNMA or Freddie “supplemental” loan (2nd trust deed) after the first year of the initial loan term, which is a feature that distinguishes the GSEs from CMBS lenders whose standard programs prohibit secondary financing.

We do have a 0% down mortgage program for first time resident buyers (that can only be used once), but the property purchase limit is $200,000 and it is difficult to find multi-unit properties in this price range - unless they are in a C or even D area.

The VA Supportive Housing Program approached us specifically knowing what we do and that our people are educated investors.If THAT'S "too good to be true", well, you may want to re-evaluate your standards.David J Dachtera"Success is not a destination.