The 203k seems pretty appealing for what I need except for the fact that i believe it requires me to have a licensed contractor lined up as project manager.

I am aware of the moving exception but my first FHA was in 2005, moved in 2007, bought current primary with conventional and now looking to buy multi unit with FHA, my lender said he wasn't sure I fit squarely within the exception.

There are plenty of exceptions, of course.

I don't have to do anything except answer some questions here and there with mine. 

First off - asking price is meaningless except as a barometer of whether or not you might be able to do business with the seller and whether or not you have the financial ability to close on a house (ie if you can't come up with $200k you wouldn't be looking in that rough price range).

Read the terms of the sale to make sure you are entitled to clear title if you win. 99.9% of the time that will be  the case (Courthouse step foreclosure auctions are an exception.

I make an exception for income verification if its section 8, but still will not take someone with evictions or bankruptcy.

=============================Title Insurance Company is irrevocably committed to issue to buyer an owners title insurance policy covering the property with standard coverage customary in the state where property is located showing liability in the amount of the purchase price and showing insurable title to the property vested in buyer, subject only to the following(a) Title Insurance company standard exceptions(b) Liens for all current general and special real property taxes and assessments not yet due and payable(c) liens of supplemental taxes, if any assessed(d) any facts an accurate survey and/or a personal inspection of the property may disclose(e) the mortgage/deed of trust/deed to secure debt lien in connection with any buyer financing(f) any laws, regulations, ordinances (including but not limited to, zoning, building and environmental ) as to the use, occupancy, subdivision or improvement of the property adopted or imposed by any governmental body, or the effect of any non-compliance with or any violation thereof, including but not limited to, any disclosure an/or report required by ordinance(g) rights of existing tenants and/or occupants of the property (if any)(h) covenants, restrictions, easements and other matters that do not materially impair the value of the property or the use thereof(i) non-monetary encumbrances disclosed to buyer in writing prior to entering into this agreement (j) any other matter for which the title insurance company agrees to provide insurance at no additional cost to buyer===========================================================

The file will be under written by Under writer and your loan scenario will be approved except property.

Ned Carey based on the information available at the time of the post, I don't see anything to indicate there's anything unethical going on in the slightest.And this practical seems practical and ethical, I'm not sure which part of the practice could be considered unethical; with the exception of saying one thing and then doing another.