I have a friend who has used that product to buy an owner-occupied home, then used it to buy another when their circumstances changed, and rented out the old one..

In many cases the old saying as to "the letter of the law" or "the agreement" isn't the case in reality, it's the intent and circumstances weighed in light of what is black and white in business dealings.As a servicer of installment contracts I have had many initial threats to accelerate a mortgage to maturity.

(If it's high because it has aluminum wiring or fuses instead of circuit breakers, different story.)Under those circumstances, I would think that it's reasonable to go without property insurance.

Derek W.It also comes down to circumstances there is a real world example.

My mom can be pretty lenient at times depending on the resident's financial circumstance at that time, but she always makes sure that she is firm in the need for the resident to have the rent money ready as close to the due date as possible.

@Thomas Manuel , I'm not a note investor, but I've seen many foreclosures in SF and the Bay Area, and they can take more than a year on primary residences, depending on circumstances.

Escrow instrux are binding here, but IMO it's advisable to be contractually bound asap under most circumstances.

(Emphasis mine) An issuer is required to consider the facts and circumstances of each purchaser and the transaction.

It was sent to a second underwriter due to the fact that between the three partners, this purchase would exceed the 4 property limit (A & B have 3 properties, C has 1) The second underwriter wouldn't give a loan commitment due to this circumstance.

Off hand, good terms, very good rate for seller financing, so good it makes me wonder, guess that means $1,080,000.00 financed.What is better depends on your market.The only other advice is ask questions that has much more detail about the circumstances and what the goals are.Asking what is better, as you did, is like asking what's better, a Ford, Chevy or a Dodge?