And, I agree with Jim. The FHA has their restrictions for a reason. Not only to protect them and the lender, but you as well. If this project is in this state now, what kind of guarantee do you have that it would be any better by the time you sell? I mean, what if your life changes and you need to sell in a year or 2? I've experienced some condo projects that started off great and exciting and ended up in major litigation with the builder, developer, title companies, etc. What a mess!!
General rule of thumb, unless you can afford a loss, don't jump in to a purchase that's problematic before you get there.
NMLS # 6395
Financing Kentucky One Home at a Time