You need to be aware that the My Community Mortgage is now limited to 97%.
The only 100% purchase options I am aware of are V.A. and FHA with a down payment assistance program
Assuming that the pro confirms that your deal is indeed selling below MARKET value, the lender considers the lower figure of either the appraised market value or the contract price.
The other good news is that 100% purchase financing is still available for owner occupants who have good credit and can document their income. You will still have some closing costs to pay such as escrow fee and title insurance, and first homeowners insurance premium. Several of the pros that respond to this post are mortgage brokers, check their profiles.
Depending on the value of the home, you may want to look at a My community program and or ACORN program offered by Bank of America. There are still a few 100% deals out there, you just have to sniff them out. Is FHA a viable option for your clients? I would reach out to 2-3 different lenders and paint them the picture of your clients scenario, they will hopefully point you in the right direction. By letting the Lender know you are shopping the loan, it will entice them to fight to get your clients business.
Century 21 Infinity