All they would do is owner occupied purchase with 5% or more down, on a single family home (guess who established a solid referral relationship with that CU in about April 2020? 

You can't make significant renovations while occupied.

@Corey Dussault, based on your post, it seems like you're talking about a 2-4 unit which you'll be occupying(since you'll be renting out your current primary). 

The property was only ever occupied by the original owner since 1960.

Are you familiar with any low down payment conventional loans available for owner occupied properties?

If yes, the loan amount in the Twin Cities metro area is $1,054,000 which is nowhere near 5% down on 1.2 Million, not to mention the minimum down payment on an owner-occupied four-plex is 25%, if your total qualifiable income is above $83,440 annually.   

What were you expecting; owner occupied rates?  

Now, if you are planning on living in one of the units and occupying, that changes things. 

Would it need to be permitted to rent out as an extra unit since you won't occupy as the owner? 

Gain= Sale price- Selling costs- basis of home If it's their primary home and they've owned and occupied it 2/5 years they can potentially exclude $250k if single or $500k if married of gain though.