You have to pull a FHA case number number. Run all parties involved through cavirs, make sure you order an FHA appraisal which usually takes a little more effort because the appraiser has to inspect more health and safety things than a conventional appraisal. The mi is very expensive so only go FHA when you have no other choice. But if they chase also very lenient when it comes to debt to income and especially foreclosures and bankruptcy.

FHA loans and conventional loans are both types of mortgages, an FHA loan is intended for borrowers with low credit scores and incomes. FHA loans requires mortgage insurance regardless of down payment.  A purchased money loan is issued to the buyer of a home by the seller. Also called seller or owner financing.  Purchased money loans are often used by buyers who have trouble getting a traditional mortgage due to poor credit.  

I hope this helps a little.  

Purchased loans and conventional FHA loans differ mainly in the way they are financed and the process involved in obtaining them. Purchased loans are funded by traditional banking institutions, such as banks or credit unions. They usually require a down payment of 20-25%, and may require additional documents for approval. On the other hand, conventional FHA loans are insured by the Federal Housing Administration and typically require a down payment of only 3.5%. Furthermore, they are often easier to qualify for and can offer lower interest rates than purchased loans.