Or do they apply an equalization ratio.

Look at a few of my post to others and if you want some direction or advice from an Old Fart, I'm your guy.  

For clarification, Fannie Mae and Freddie Mac aren't lenders, so you won't be dealing directly with them.2. 

It sounds like you've gotten some solid direction above, but a few flags stood out to me in the above discussions and I wanted to point them out to help make your decision.- You mentioned this sale is tax free 121 exclusion, which is great, and seems like a solid start to your goal.- The townhouse you're moving into is currently a rental, but you plan to live there two years for the 121 exclusion.

this is a direct relation to lack of inventory.. new construction on many markets is as robust as its ever been.. we have had spectacular years the last 3 years of course during covid was tough with supply chains but my 500k house I am now selling for 700k and my build cost have gone up by maybe 100k.. so record profits for us.. 

You’re on the right track—build awareness of costs where it directly impacts their role, but don’t overcomplicate the program with factors they can’t control.

This helps prove your direct participation.Proof or Documentation – Keep receipts, invoices, emails, or even before-and-after photos as evidence of your work.

Always have a clear exit strategy, whether you plan to rent, flip, or sell the property down the line.If you or your son are looking for more hands-on guidance, feel free to reach out directly.

Happy to connect with you directly to share what it has done for me. 

This means the IRS will treat the LLC as if you and your wife still own the property directly, maintaining the continuity of ownership for tax purposes.