FHA financing has its stipulations, sometimes making it a less than perfect choice for certain types of situations. One situation where it can generally be used is when a tenant wants to purchase a home he has been renting from a landlord. There are no FHA regulations stopping this situation from occurring. There are certain rules that apply to it; however, as it is a different situation than purchasing a home from a complete stranger. The Identity of Interest Rule does play a part in this process, but just like everything else, there are exceptions to the rule.