If I cannot recoup the funds from the current owner can I do a full inspection of that unit during my pre closing inspection to bill the assistance program for any visible damages before 2/2025 when the guarantee expires? 

First I do find value in your expertise.  

We won’t qualify to get another mortgage anyway due to either dti or income.From your investor expertise, what would you do in this situation?

Just keep in mind that it's not all about rate and fees - there is a considerable knowledge and expertise component that should be considered as well.

While running a large group of small landlords in Philly, i have visibility into the full realm of challenges that new investors face - and some are quite overwhelming and totally unexpected because they jumped in without fully understanding what they jumped into. 

VG  it was my understanding that sub to guys charged 15k .. thats what one BP member told me at the time.. so its hearsay how much they actually wanted for their expertise..

Quote from @Jaša Rot:Hey Jasa, I would imagine there are going to be a bunch of folks jumping in there to lend their expertise, so just because I'm first, doesn't mean I'm right, but: Generally that initial loan needs to be secured by real estate.

However, what I would suggest based on your expertise as a contractor is going into a semi-fixer upper and make minor repairs to boost equity as well as savings. 

Thank you all for your advice and expertise.

That where your agents boots on the ground expertise comes in to land you actual deals.