Ben, So what I am hearing you saying is you had a property in LA that was worth $755,000 and after the sale of that property, you cleared $366,000 which you turned and bought a property in Houston for $400,000 by using the $366,000 and adding $34,000 more in personal funds. am I correct in my understanding?

Under the FHA rejecting a person for the ESA dog is a form of discrimination against those with disabilities.Your post suggests that this person has passed all your screening criteria except for the ESA dog.

This can add up.Property Standards: The house has to meet certain standards, which might limit your choices in a competitive market like LA.Loan Limits: There’s a cap on how much you can borrow with an FHA loan, which might not cover the higher-priced homes in LA.My Take:If you’re set on buying now and can handle the extra costs, FHA could work.

Personally, I'd never buy the biggest house, or the most expensive house on the street.

Some things that might be a concern:1) Obviously have to make sure things are all permitted first2) I don't want the room to "feel" like an addition, so flooring has to be same level/standardized with the rest of the house3) Unlike the rest of the house that has an identically-shaped 2200sqft basement underneath, this added space will not have a basement directly underneath it -- I'm not sure if this poses major cons for some reason that I'm not aware of4) Especially given the lack of basement underneath, I have to make sure that the HVAC can still somehow be piped into this room#2 and #3 are probably my biggest concerns (#1 and #4 I can find out relatively easily)Any tips/thoughts or other experience would be greatly appreciated. 

Any calling themself any kind of "Pro" or "experienced" buyer of any ilk really worries me if they don't know this, it's that standard. 

I have locked up one deal off the application and have offered in person on 2-3 other deals.

I will say that if you get some ducks in a row, things like a good cleaner, handy person etc, you could manage from farther away if you find a deal or area you are interested in.

If a buyer has good credit he can get a personal loan to buy a property, and hence “nothing down”.  

you mention the person who is complaining is now and living in an efficiency unit (to me that has everything in it-ie fridge, stove).