I doubt that company will be in business very long, so close that loan as fast as you can and take what you can get.True 100% financing is rare.If your credit is beat up, but your primary residence is good, you may want to look at house hacking with an FHA loan from a company like Carrington Mortgage. 

If you are planing on getting a mortgage to purchase most of these options would not be available for you.  

That seems incredibly low–does this mean that they've paid off the original mortgage to a point where they own 98.2% of the home?

If you are over $1mm, then I would call a few reputable commercial mortgage brokers. 

@Jacob Breazile - Make sure to account for the following expenses:1) Mortgage2) Mortgage insurance (PMI or MIP) or FHA Risk base3) Property Taxes4) City Taxes5) HOA (Home Owner’s Association) Dues and Fees and Assessments6) Insurance Property Hazard InsuranceFlood InsuranceEarthquake InsuranceUmbrella Insurance7) Vacancy Rate (usually 8% - the equivalent to one month a year, or 5-6% if multifamily and/or if experienced, if not use 8%)8) Utilities (you’ll have these if your tenant is not covering them and/or during vacancy) Water § Sewer § GarbageElectricityNatural GasPropane9) General Maintenance (usually 5%) Upkeep § LandscapingSnow removalRepairsNew Appliances10) Capital Expenditures (usually 5%, higher is the property is old and obsolete, less if fully rehabbed and all mechanicals and roof are new)11) Property Management (8%, even if you self manage, your time still has value and there might be a time when you'll want to be completely hands off or you'll not be able to do it, vacation, retirement, etc.)

Sometimes break even was a choice because I was after equity capture and put them on 15yr mortgages.

I felt pretty accomplished because the day we got married, my degree was completed, and I had everything paid off, except for our mortgage. 

Once the rehab is done and you've lived in the property long enough (usually mortgages require one year), refinance and do it all again.

Oscar Haselden with Foundation Mortgage did a great job on the 203K loan.

If we are paying the mortgage, we ask that there be one months payment in reserves just in case the tenant is late or does not pay.