I have had a couple rep me who seemed to be familiar and be able to answer questions on restrictions so I wasn't sure if this was common or standard practice. 

By the way - for anyone looking to do this, you might consider just doing a conventional Homestyle renovation loan (or FHA 203K, but I prefer the conventional over FHA), and once it's done, re-fi into a standard VA loan.  

The ability to meet those standards are TOTALLY based on underwriting.

what's certain is Fed is already in bankruptcy is they follow standard accounting practice like a bank.

Should I discuss some bullet points and do a small contract between me and the buyer or is there a standard contract for such that we can agree up on terms prior to handing the deposit to the title company?

Speaking of objectives, you will likely notice that their rates used to be much higher (I saw a lot of older posts with 9-11% rates being pretty standard) than they are now. 

They had a track record of completing work, multiple crews, standard materials, and refinancing successfully.

Similarly, make sure all of these transaction participants maintain adequate insurance and list you, the property owner and any intermediary as additional insured.If you rely on an intermediary relationship (most commonly a General Contractor or Property Manager), understand the authority granted in any agreement you execute to act on your behalf.Review the indemnification provisions in any service agreement ensuring the standard of care will not preclude insurance coverage and the provision is equitable.To recap, it’s not necessary to form a land trust, separate management LLC’s or form entities in specific states believing you will hide in the cloaks of secrecy.

Excess Liability:  There are non-standard (excess/surplus lines) options to cover after the current $2mm umbrella is exausted. 

All standard commercial mortgages include DSCR, calling an assisted living facility mortgage a "DSCR loan" is like calling a home loan a "DTI mortgage," or calling a cup of coffee a "caffeine coffee," or calling a gun a "bullet gun."