Since I am moving forward with an FHA loan my lender said the zoning must be proper before going to settlement or else the loan will be denied. 

So I signed up for a debt settlement company that I didnt do my research on before signing up (the biggest mistake I've ever done) How did you find this deal and how did you negotiate it?

Likely you will end up with a settlement that will give you enough cash for a down payment on your new home.

From the settlement statement I see, I can't figure out the gap. 

We all know that you absolutely tore up the Simple Passive Cashflow Podcast at 2.76x speed using the Overcast app but content vomiting “SFH, MFH, MHP, AL, and self storage in secondary and tertiary markets, IBC, QRP, notes, crowdfunding, oil and gas, land conservation easements, life settlements, take out your 401k tomorrow” in one evening is not advisable.

You probably paid some deductible property taxes at settlement and purchased a rental dwelling insurance policy (the policy premium is deductible if paid last year). 

William,The bank does not receive any money - they give you the loan.Everything is reflected in the HUD settlement statement.

@Mike TrzaskaHi Mike,You don't have to wait, there are strategies to avoid the seasoning period through putting a lien on the property at the time of closing or putting the rehab funds into escrow and having them appear on the settlement statement.

Make certain to request the investor rates/fees and then double check the settlement statement near closing time to ensure the investor fees are being used.

Exact terms from the buyer agency contract:Buyer is ONLY responsible for paying the flat fee of $350.00 at settlement.