IMHO, investing (rentals) and residences are different sort of beasties.

Now if they're wallowing in their cash and can afford to lose their money, perhaps you can discuss some sort of investment partnership.

If it was important to HUD to prevent this sort of thing, they would have done something about it by now.To be honest, HUD should be happy as long as you're closing.

Motivated sellers that aren't in foreclosure or haven't been contacted yet through direct marketing, maybe tired landlord that have evicted recently, or properties with code violations they can't fix or pay for.

Now i'm even more motivated.

I do know they run an eviction screening and a police record screening of some sort.

Any sort of side deal or borrowing the down payment then signing a form stating its not borrowed are all forms of loan fraud.

Most jobs worth anything will require you have some sort of degree.

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Would this motivate you to target properties in the program area?