From the few experiences I had, getting a Certificate of Occupancy took so much out of me with all the phone calls and arguments and incompetence that I just got a bad taste in my mouth.  

if i were you, i would take a sample and have it tested just to have it tested. if it is mold, there are 18 different species of black mold and only 2 are toxic. that advice is coming from a licensed home inspector with a mold certificate. if it is black mold and is toxic, then you can remove it yourself, but protect yourself too. make it part of your offer. if the seller doesn't want to accept your offer based on the mold, then walk away. if you do not want the place because of the mold issues, would someone else want it?

As there are a ton of different wrinkles and programs, both local and federal, its tough to be a bit more focused on what could be in play. 

it's any one purchased and use his program? 

he's 66 now and I guess he's gonna retire in 2 years that's not gonna change...my sister has very bad deliquent credit so him getting the loan is the only option she can't get a house not for another 3 years she needs a house now...so what loan programs allow for purchase and rehab of you already have a mortgage?

I told her about my company's strategy and what we're looking for and she tells me that she has a few people with "programs" that might be able to make that happen.  

He can get a certificate of insurance from any contractor or inspector that will set foot on the property.

Also, you can come up with an expense reduction program. 

And then stay out of the market during the last six years of the cycle and maybe buy something recession proof like tax lien certificates out of state. 

MVA has a certification Certified MVA Expat Broker.