Quote from @Peter Walther: I think you'll find most, if not all title insurers, will require the DIL to be dated and executed subsequent to default in order to insure. 

The VA and Fha loans have been able to do it but their strict appraisal guidelines make it tough to buy the often older homes in my market in Virginia Beach / Norfolk Area. 

Like in this case, wanting a new home. 

Quote from @Brad Roche: The other thing that is great for the FHA 203K loan (not sure about the Homestyle loan) is that you can kick the payments out to 6 months of ownership (so close today and make your first payment July 12th 2025) if you are fixing up the home.

If you pay down $100K in loan saving you $1K in monthly costs against rental income, or you invest that $100K in something that generates $1K in net income the result is similar.

The lenders that offer the 203k renovation loan are telling me that DPA cannot be used with it and this is in Ohio.

To us, its a "Bridge Loan" (lol).

(No mortgage on any).the cash flow is a total of $3,100 a monthDo portfolio loans exist for these kind of situations?

you can use a DSCR loan if your DTI is too high for conventional. 

In order to move back into the home, the homeowner would need to reinstate or payoff the loan, including the costs of the receivership as permitted in the order.