Any creative thoughts on how she could purchase this home. 

Most non owner occupant loans are 20% down.Sub2s and property trusts are common tools together.If you are going to buy on a wrap, buy with private money with no due on sale clause, then sell on on a wrap.Remember all of your creative tools: sub2 with or without a note, land contract - contract for deed, lease with option, lease purchase, purchase with private 1st mortgage, jv with cash partner, jv with home seller and use private money for rehab, wrap-aitd, and more. 

Are some lenders better with "creative financing" than others?

So bankers are likely to be forced to try to generate creative ways of financing an unafforable mortgage which often isn't a sustainable solution and/or people are likely to move elsewhere.Apparently house values also increased by some 21% in Los Altos from last year according to Zillow which certainly isn't the national norm nor am I aware of traditional income growth being in that range here.

Remember that most people lack creative vision and staging is the best way to show them the way. 

There an old joke among Texas accountants about types of inventory:FIFO (first in, first out)LIFO (last in, last out), and as it pertains to Texas real estate,FIST (first in, still there)With the exception of Greater Austin area, it's often hard to get out, hence the creative monetization stories. 

Sustainability would be key but might provide a creative solution to a killer heating bill. 

You'll get a much better understanding of seller financed transactions and installment contracts, the conventional requirements are the target to be met in doing in any creative deal. 

I know there are some other creative ways to buy commercial properties without putting down 30% (i.e. seller finance a portion of it).

Finding a property like this in a B-class community was sheer luck and some creative renting arrangement.But, I think this is possible.