The 3115 is "Application for Change in Accounting Method" and the accounting method he would be changing is to go from a policy of not deducting depreciation to a policy of deducting it.  

So far, I've checked with two mortgage lenders and both require that the down payment either be seasoned (in my bank account for longer than the 2 most recent months' statements I would use on a mortgage application) or they would require documentation on the private loan and that the loan is secured by using my current residence as collateral.

Lurkers: Basically, this is applicable for anything coming up beyond your control, or ability to anticipate, that would cause you to break your promise to owner occupy for 12 months.

We went back and forth a few times, as I don't understand how there could be no financial statements, and she eventually said that they have them, but only give them out to owners and banks for mortgage applications, not buyers or other people.

The down side to this community is that the 1% guideline would not be applicable here...

You will need to file a application with the buildings department.

I'm not sure if their story was true or not but if it was they are idiots for thinking they could rent a house without ever seeing the inside first, not filling out an application, not getting a lease, not getting keys and the house not having utilities on with"all utilities included."

At bare minimum, assets are confirmed by using a 1003 Uniform Residential Loan Application.

I explained this to the guy doing my initial application processing after he read the estimated closing costs.

There's nothing wrong with focusing on section 8 as long as you use the same screening criteria you use with every applicant.