Best of Luck!
As to you finding a house in Nevada City for 100k? If you are willing to look in the N. San Juan area you have a good chance. The services are not as plentiful but you will get snow and a home for the price you have indicated.
To be honest a $100000. home in Grass Valley area that will be financiable is difficult to find. Not only do you have to qualify for the loan, the home has to also. There are some programs that allow you to finance in repairs, speak to the lender about that too.
You may have some luck above Nevada City towards Washington, Cascade Shores, N San Juan and then in the neighborhoods around Bartlett (near Cedar Ridge school) once in awhile off Butler or Walker.
Start with the lender, then work from what they tell you.