Whoever told you that was confused about a TX law that applies to your primary residence, not an investment property. 

If you really are serious you can do it all on your own and keep everything but that requires planning and pretty much starting your own business in which all basic rules apply knowledge, capital, etc.

I just wasn't sure if the same rules applied if both parties are non agents or if this was a rule just for licensed realtors in Texas. 

So, the 45 day rule to apply the proceeds to another Primary residence will not apply, here.

I may be wrong, but I'm pretty confident this is the case.I suggest just applying the full $200K toward your down payment. $200K is 20% of a $1M home; how far away are you from qualifying for an $800K loan?

Why apply to an apartment when you already know it's not in the area you want?

Also my statement only applies if the person has an experienced buyers agent.

What are some industry standards that I can apply to these areas when evaluating properties?

So I am applying for a VHDA program like FHA or another low down payment program.

Bear in mind I plan on renting the house unit and living in the finished basement, so the opposite question applies too2) I have been told that there is no cosigning or guarenteeing for mortgages in NY, only coborrowing.