That’ll get your negotiation skills sharpened for sure.The reason for that is that this property has a gatekeeper- the agent.

FHA for a place you plan to live in is a much better option if you can qualify for it,  IMOI am assuming we are talking small multi like duplex-quadplex.  

-Buyer was in the end (along with their agent) inexperienced and didn’t realize they didn’t qualify for a loan with gifted money on an investment property.

Can a borrower qualify for a Home Possible mortgage if they own another property?

A mortgage is not an option for us because we would not get qualified.

Meaning that they were nowhere near ready or qualified to buy. 

So...my question is...Should i wait, save more money to qualify for FHA @ 5% or try and find a foreclosure and work on it myself?

@William E Edwards problem is we used FHA for this house and even qualified for a grant that payed our closing costs.  

Since we just finished a 2-bedroom apartment rehab in central Connecticut I figured I would post some pictures of the finished product as well as some details on the products we used for paint and flooring.This apartment is located in a lower B class neighborhood that will attract solid qualified tenants and the apartment rehab and the materials used reflects that.

Always happy to help those local to me in SW Ohio and Northern KY.With that said, technically you can qualify for a 203K loan with ANY amount of repairs (no upper limit) as long as the foundation is intact.