HomeStyle and 203(k) are both available loan options if you are a first time home buyer. There is no requirement to have previously purchased a home or have any history of owning and investing in property.
In fact, these loan options serve as a great tool to many first time home buyers who otherwise would not be able to afford both the down payment and the cost of renovations. These loans open up the door to homes in neighborhoods that may otherwise not be possible.
Minimum down payments are 3.5% for a FHA 203(k) and a 5% for a Fannie Mae HomeStyle. Remember that these minimum down payments are calculated by the total of the purchase price + the renovation costs.
It is true that these loans do come with A) more paperwork and documentation, and B) a significant amount of additional choices and decisions to make to close the loan AND renovate the home.
All buyers, especially first time home buyers, need to be extremely prepared and knowledgeable prior to initiating the process. This includes choosing the right lender, a great realtor, and a proficient contractor.