Where some Borrowers get crossed up is when they compare a 50 year old 1200SF SFH with a similar one which just just got built THIS YEAR as part of a tract development or whatever......can't do that.  

I have a buddy building a small tract in Fontana Ca.

The adjacent property to mine is a small acreage vacant wooded tract that is abandoned.  

Kevin,I wouldn't consider it a deal breaker, if you feel the price is good for the property. so you or your landscaper have a little extra work cleaning up, that shouldn't make or break a deal. as far as your concern of the tree. you never know when any tree or branch may come down, if trees are your concern then why not look at property on tract land where they clear cut the area?

You might also look at conventional options too, as there could be 5% down options via Freddie Mac, depending on the area/census tract. 

It has income limits by census tract, but here in the Bay Area surprisingly large swaths of real estate (eg, 90% of Oakland) are "no income limit" census tracts because they are looking at 2010 Census data (eg, middle of the Great Recession when the mortgage industry was imploded) to determine which census tracts are "under-served" by the mortgage industry.

However, I think @Elizabeth Wilson and @Jonna Weber are on the right tract suggesting house hacking.  

Lots of 1970s middle class tract developments where the military families and civilian workers lived.   

There are income limits on certain census tracts but as an agent, I have had over 25 clients do it this year on 2-4 unit properties

What makes this vacant tract more or less valuable than that vacant lot.