Our 3 bankers said there is still a lot of cash and Government issued cash out on the sidelines looking for a home. 

I have a HELOC out on one of my properties with Navy Federal credit union and they loan up to 95% for HELOCs.

@Maximilian Glodde, If you're asking if you can still take the federal primary residence exemption of sec 121 then the only requirements are that you are selling and have lived in it for 2 out of the 5 years prior to sale. 

If not, then you are raising capital for a security which is governed by the SEC and you will have to register for a securities exemption with a syndication using an SEC attorney. 

And if you service an area "in need" not only does the government look at that favorable (they are the ones that run compliance, etc.) but sometimes those segments are "growing" segments.  

Do we have the federal government take them over for being morally wrong? 

The local government has taken the property back and is selling it at auction.With a tax lien you are getting a lien against the property.

I require applicants to bring a government issued photo ID and one recent paycheck stub.  

That doesn't include federal and state tax credit by the way.Key is that your business needs the net income to support the write off.

They do not serve any purpose other than federal tax reporting.