Personally, I don’t see anything wrong with no money down mortgage loans, assuming, of course, that the borrower has the credit history and income and insurance to back up the loan.
One strategy for those going into an area for just a few years is to buy the house at adjustable rate because they intend to be in it 4 years or less. This is common with the military who prefer living in a house to government quarters or to renting. In decent times they can break even with 4 years of growth in the real estate market when they have to sell. This is made possible by the ARM and the zero down payment.
If you’re just going to break even after 4 years and move on, it would make more sense to rent. At least there you have no risk, and if you’re not going to make money anyway, why add risk?