It depends on the lender. Homepath has their base guidelines, but as with any program, the lender who will be funding your loan has free rein over putting overlays in place to protect their interests.
Renovation loans in general do take a lot more effort to close. They take a longer time to close, and a lot of them don't wind up actually closing. While several lenders offer them, few are truly good at getting them closed. Your Realtor has probably had nothing but bad experiences.
This is not to discourage you from pursuing this type of loan/property. Just be aware that it is not as easy as the website suggests and you will have to practive some patience.
If you do still want to pursue things, make sure you find an experienced homepath lender as opposed to going the normal route of shopping for the lender who is going to give you the best rate. That is a sure way to trouble, and it doesnt matter if someone is offering you a 1/2% better in rate if they can't deliver a smooth closing for you.
Best of luck!