Once approved, they sign the lease and become responsible for the full terms therein.I personally charge a $50 fee every time I have to amend the lease, which means $50 for each tenant being added.I'll bet dollars to donuts this doesn't end well.

Also, I amend countless returns annually by CPA's who don't know real estate. 

Since you are already under contract on the property, I would consider sending an amendment that you as the buyer will be changing your financing terms from conventional to FHA.

Take your tax return to a real estate savvy CPA and ask them to either explain in better detail why the original CPA did it correctly or have that CPA amend your return (which is likely to be the case, based on what I'm reading).  

Hi I wanted to see what other members did when issues come up that have to be taken care of before you can complete tasks from the original scope when working on a rehab. do you amend your scope of work with lender, just pay out of pocket, or is there something else that can be done?

I've been reading quite a few of the past discussions about lease amendments but thought I would post our specific situation to see what your opinions are. 

Tax wise this may cause an amended return with our IRS.Interesting too, that the contract is more of a contingent asset, may be it has value but it can only be valued as it is consumed or earned if the optionee has the right to back out and obtain the remainder of the option price. 

In any case, I have done this where the interest rate was bought down (PPD interest), another where the purchase price was reduced (requires a new Amend/Extend to the CBS contract), another where the buyer needed to repair the roof and paint the exterior, but did not want to come out of pocket, so a repair escrow account was established for this purpose.

That said, I favor the repeal of the sixteenth amendment to the US Constitution.

if you do not have such a policy on the books I'd suggest amending the lease agreement to incorporate a NS policy and institute a penalty if you see smoking on or within x amount of feet of the property.