Need advice on first real-estate purchase

[Jacob McCann]

I'm looking to buy a SFH that is outdated and needs minimal renovations. I plan to live in it for a couple of years then rent it out. My question is really on what kind of mortgage I should go with. FHA sounds real nice due to the low down payment which is what i'm after so i can use the extra money to "update" the home, but i'm worried that the homes i'm looking for wont pass inspections with FHA. Does anyone have any insight as to what kind of homes FHA wont loan on? My alternative is a Conventional loan, but I really want to stay 10% down-payment and lower.

Thank you!