Two separate paths, and @windlass named the second one.
A standard purchase mortgage funds the house as it sits today, and most lenders require the property to meet a minimum condition standard. A missing kitchen or a non-working bathroom often fails that, which is what your loan officer was circling. Different lenders and loan programs draw that line in different places, so get the actual condition requirements from your lender in writing before you write offers.
A renovation mortgage funds the purchase plus an approved scope of repairs in one loan, with the repair money held back and paid out in draws as the work is inspected. It costs more in fees, takes longer to close, and usually requires licensed contractors with bids submitted up front. Some programs allow owner-performed work and some don't, which matters a lot if your plan was to do the demolition yourself. Confirm current program terms with the lender rather than a forum, because they change.
On cash, plan for more than the down payment. Closing costs commonly run a few percent of the price. You'll want the money for whatever makes the house livable in week one, meaning water, heat, one working bathroom, and a place to cook. Then a reserve, because renovation surprises are the normal case and a house you're living in can't just sit while you find money.
The piece people miss at this stage: your live-in flip's 24 months of residency for the primary-residence exclusion starts running once you own and occupy it, so a slow closing on a renovation loan pushes your whole exit out. Worth building into your timeline early.
