I thought you live in Fiji bc you are restricted from moving back to New Zealand due to bankruptcy?  

Is a 203 K loan restrictive as to choosing the contractor, etc ?

I didn't look into the HOA rules and assumed that the townhouse will have no rental restriction.

But to be honest, pensco is ok, just slow, a little restrictive (which might be in your best interest) and a little difficult to deal with sometimes.  

Other than paying off in 5 yrs, and charging at least prime, and the max amount rules, are there and restrictions on terms?

They learned their lesson on that stuff so lending has tightened up, but if you've got the credit and assets you can probably find someone to do one relatively easily. 

In the end those HFH homes should have some sort of restriction on title that sends them back to the pool for low income housing to be used again.

I'd think you mean not to conduct commercial activities that are in violation of any zoning restriction or allow public commerce to be conducted on premises.The tenant agrees to maintain the leased premises in compliance with all regulatory requirements, ordinances and laws as applicable.

You need to sit down with an FHA lender/mortgage broker, not one of the big banks because their own additional overlays (additional restrictions) on top od FHA.

I have a document that starts out with 'index to declaration of covenants, conditions and restrictions'.