FHA requires a 12 month OC but your entitled to a "Change in life circumstance". 

@Tara Piantanida-KellyVery unfortunate circumstances.  

From my experience, local lenders are easier to work with and can work around different circumstances. 

Just trying to understand at what circumstance would you apply the1% rule and if any additional factors get calculated in that rent amount.Thanks,Mel

If you have had a similar circumstance I would enjoy hearing what you have done to adjust or change how you are buying properties during these times.  

If I had to guess, I would say the seller of the first property simply needed to sell fast and cheap for some type of unique circumstance (avoid foreclosure, need to pay medical bills, etc.)Whether this makes it a good deal is another conversation.

today the husband called to say he will be 2 weeks late because the wife had a mental breakdown and was hospitalized for a week , so he had to stay home . also he informed me next month he’ll be a week late because he needs to catch up . the lease states there is a late fee after 3 days . is it fair to charge him under these circumstances? 

Due to unforeseen family issues, we won’t be able to move forward with this purchase. 

Under other circumstances, I would have walked away and never looked back.

This lead to extensive change orders and changes in scope, due to unforeseen code issues with electric and plumbing.