I am from Dallas Texas and do not know that area geographically.  

Rochelle is the geographic middle between our two jobs.Not as much opportunity in Rochelle (pop 10,000) but I'm:15 mins from Dekalb 25 mins from Rockford Adjacent45 mins from Naperville/Aurora45 mins from LaSalle/Peru (Cassie's work location)1 hour from Janesville/Beloit (My work location)We're open to cast a wider net if the opportunity arises.Currently we're saving approximately $5,000 every two months for down payments and listening to the BP podcasts on our commutes.

And it sounds like you definitely need a new handyman - not wanting to work around mean people is no good explanation for late projects. 

The explanation above is how the market as a whole reacts to perceived risk.However for a Specific building, paying a lower price means higher returns and lower risk.

The UW will then counter the loan as an investment property and require 20-25% down or counter it as a second home with conventional financing with a min down of 10-20%.This is what will happen if a loan officer submits the file as suggested above.It would have to be a pretty rookie mistake by a loan officer (LO) though to submit a file with out the property explanation and documentation because it would not put your file in the best possible light and achieve what you've intended to achieve.Is it possible for her to get a primary residence ?

There are many possible explanations.

I am interested in other geographic markets as well.

The narrow by entering a geographic area.  

@Chris Piper Thank you for that explanation.

@Tommy F. thanks for the detailed explanation and good points.