The lower the score, the higher the risk and the more we charge for a deposit.

In decades past, carriers were allowing people to carrier lower limits of insurance on their properties. 

Again you can buy more properties in lower asset class area, but it's less efficient.There are many threads about appreciation, so i won't repeat it here, but my guidance to you is to think through the difference between appreciation and inflation. 

You'll get a feel for the age of the neighborhoods, the vitality of the commercial buildings, the ease of location, the closeness to jobs.The markets you're describing are more linear, and usually have lower capital appreciation.

Not sure if that’s because I’m lower in the pecking order or if they are telling all investors it will be the later date.I’m also concerned with the potential impact on building costs.  

Thus, your profit margin is lower (than the all-cash offer), but your ROI is higher.Savvy or more experienced investors may have access to Private Money.

Are there any options for lower down payment loans in general or even for college students?

That gives you a great advantage to the lending investors are getting here in the states with the much lower interest rates. 

I have noticed a lot of investors are seeking out cities that are offering lower priced lots and simply adding a Modular or Manufactured and capturing a very nice cash flow.There is a new trend starting in Florida and in other states where an investor buys a piece of land or lot and add a 'Tiny Home". 

Basically, lowering the sale price as long as the buyer pays all the owed taxes as well.