Our new timeline:
Eddie finds a job *right now*!
Receive grant from Mt. Saint Mary College/St. Luke's Hospital ($10,000)
Receive RECAP grant ($24,000)
Apply for mortgage. This time, if we get the grants (to cover the 20% downpayment), we'll try for a traditional mortgage and renovation loan. Hudson Valley Federal Credit Union offered a great rate for that combined loan (less than 5.5%) and the closing costs were half what it is for an FHA loan. Plus, no mortgage insurance.
Close on the house. Maybe. Hopefully.