Tried to get traditional financing for the house but got denied due to not having any income.

Could you confirm/deny my understanding of these rules?  

I tell them it's in case I "get hit by a bus" and they have to deal w/my wife (but it's also obviously in case they get amnesia and forget something we agreed to.) 

The loan officer challenger the appraisal with local comps she herself looked up and they still denied the comps.

I regret not pursuing further an appeal they denied for me.

What happened during the last market correction, a lot of people were relying on these HELOCs to fund rehab projects, and banks closed the HELOC (or denied the annual renewal) while people were in mid-rehab. 

Your desire for the house of your dreams is not a significant enough change of circumstances to get two FHA or Fannie Mae backed loans in the same year and an underwriter will deny the loan. 

If you have two applicants with scores of 700+ and a third with 550 then you could deny their application because of the person with 550.When I rent to three or  more unrelated people, I require each of them to have a credit score of 650 and make at least 2x the rent for a combined total of 6x the rent.

It's even more abusive since HUD (your tax dollars) will be wielded against you. 

happened in Detroit for various reasons. the homes folks are buying for 20 to 40k now in Detroit and rehabbing I was loaning 70 to 80k on them in 04. and that was 60% LTV then..So in my mind those that made it through were Extremely well capitalized or like many of my clients they own their rentals free and clear.. and they take the abuse of others telling them they are nuts to not leverage up..