If you qualify for the Freddie Mac Home Possible Mortgage (income restricted), you will need a minimum 15% down payment effective January 1st, 2021.

Technically, even if she did fill out that form and gave it to you, it would not apply in her situation but unfortunately (at least here) courts are not allowing landlord to contest those.I don't know if your city or state has any further restrictions but the CDC Moratorium doesn't apply here and again it is her responsibility to present that to you if she thinks it does apply. 

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I see many condos-townhomes implement restrictions against tenants due to their experience with issues tenants have caused vs owner/occupants. 

I don't recall any restrictions on living in the house; there's a provision to finance payments if you can't live in the house.

What is the procedure/restriction of renting to section 8 in AZ?

Legitimate lenders, such as Renovo Financial tend to ask for a deposit upfront but that's to pay for the appraisal which is something that even residential lenders (restricted by the prudent restrictions of Frank-Dodd) do as well.

Because when a tenant has their rent subsidized by the government they are NOT subject to the restrictions of rent control.

. - Permitting - Development in the coastal zone is highly restricted.

Are there any restrictions on LTR of prefab cabins?