But if the house cannot be sold within the closing date, does the wholesaler need pay anything to the original seller?

.- you cannot use non occupant coborrower for income purposes or you may have to increase your down payment significantlyAs for other underwriting guidelines, its pretty much the same as any other FHA loan.If all units are occupied you'll need atleast one of the tenants to write a letter to state they intend to move out by the date of closing.

So is their start dates.  

Do you have the tenants sign a fresh contract or do you mark out the key dates and have them initial those areas?

I'm considering a rental agreement that states the move-out date in the contract (with option to extend under certain terms), and has them pay the full 2-3 months' rent up front, with a half-month security deposit also due prior to taking residence.

@Randy Steele  www.meetup.com  very useful website/app 

We agreed that $500 of the rent would go into an account to be used or a down payment, if they bought the house, with a specific purchase date a year out.

See http://codes.iccsafe.org/app/book/toc/2015/North_Carolina/Existing_Building/  The point of my post is that Durham may have some restrictions that you won't find in building code.

Hey Michael,I have a correction on the date for the BP meet up  It's Wednesday May 25th. same time, same location.  

Yeah the issue is the "re-entitlement," for your father because once the VA loan is paid off there is a process probably through the Arizona VA office to restore that entitlement so the VA program is once again available for his purchase.So depending on his close of escrow date for this new home and when it is or how flexible the seller is then using a refi to conventional and VA for purchase would be possible even with a couple hurdles.I think that is the most efficient path too since VA rates are generally lower than conventional.