Maybe your situation is different and if you don’t feel comfortable in the neighborhood then this may be a moot point anyway.As for FHA, my understanding is that you must intend to live in the house for a year  it sounds like you did intend to, but due to unexpected circumstances- lead exposure and unexpected unsafe neighborhood- you have to move.

If you are in this business long enough you will undoubtedly arrive at situations where taking the small loss even if not fair or warranted based on the circumstances is best if it keeps everything moving and avoids more costly delays, liability and inconveniences.In this case, if you withhold the $2K, you still have to find someone to complete the work to your satisfaction.

I forgave a tenant of a certain circumstance, and I treat my contractor's crew to lunch when they are working on my property.In the future, show some professional courtesy and class by contacting a poster or BP directly if you think a post contains something "eerie" or nefarious. 

You need to work with someone who can help you according to your specific circumstances and resources.

I generally believe insurance is not worth the value in most circumstances (otherwise those companies wouldn’t make money), but I am a big believer in umbrellas.

While the circumstances may seem entertaining, the reality is this is not a laughing matter.

I am not the one making the payments, but it's still on my credit report.My limited income, combined with being a co-signer on the loan, results in a less-than-ideal DTI ratio.Under these circumstances, what type of loan or lender should I focus on?

We will never have the right answer; everything depends on your circumstances.

But it’s unclear if this applies to HomeStyle loans specifically, given the initial renovation appraisal already accounted for these improvements.I want to know if anyone here has been successful in getting PMI removed under similar circumstances or has any insights into the specifics of Fannie Mae’s policies for HomeStyle Renovation loans.

Circumstances like not holding annual meetings for corporations, not having corporate resolutions , commingling funds, taking money out of the corporation personally without that withdrawal being either a salary or dividend, etc.