I will  have to take ARM 7/1 with 4.25% rate. 

In some jurisdictions, they tenancy law may explicitly provide such a clause.

my mortgage (2 family house in NYC) with both tenants don't pay rent at the same time cost me an arm and a leg. at this point, i have no money to hire any lawyer or anyone but myself going to the court thousand times.Thomas S. i agree cameras help only if you have a multi family. nobody want you to install the cameras if you have SFH. cameras helped me. i had no help getting my non paying tenants out. i opened the main door downstair a few times which they live upstair and slammed it close on purposes. she text me why you opened my door. i was naked(which i don't believe). i told her i smell gas leaking which i don't live there and told her i wasn't in your house. you could see my leg was holding the storm door opened on my cameras. i just want to make sure no gas leaks before i called 911 for fire department. i did it a few times to put fears on them. cause i know i can't get them out and not garnish their money.i have nothing to lose at that point. the reason i tell the story i want to help out the landlords. no matter what proof or cameras you have, the judges will let them live for free. you stole something from the store, you robbed someone....etc. you go to jail. i have a mortgage to pay and tenants don't pay rent. they could stay for free without going to the jail. what kind of non sense is that. can the bank let me don't pay the mortgage for 10 months?

Most investors (and gurus) outside of Maryland have never heard of it, but it makes it explicitly illegal to speak with a homeowner (who's covered by the law) and then purchase their home.

I've never seen it be a deal-killer, but in theory it could be the straw that broke the camel's back if it were a super marginal/borderline transaction, such as if there's already several other things already going on that are setting alarm bells off in the underwriter's head.It's similar to the extra scrutiny given to non-arms length transactions (by itself not a deal-breaker at all, but if there's already a bunch of other funky stuff going on that this is piled on top of...), but not as high a level of scrutiny as will be faced by someone working for their family that suddenly has their income double right before they apply for a mortgage.

The higher your roof, the more difficult it will be and the more tired your arms will be.

Hi @Christine Mwai,Private money and portfolio ARMs might go for it.The big agencies, Fannie/Freddie/FHA/VA/USDA, have to make one-size-fits-all rules based in no small part on aggregate data.

Keep in mind, I'm not looking to spend an arm and a leg to give them this conveince.Any suggestions out there?

I say that not as a jab against Ben but because it seems so obvious as to not need to state it explicitly and any one with any common sense should implicitly know ... but sadly common sense is not so common ...

I'm spending this week getting my arms around financing, but I've come across a duplex and a couple of SFR that I'm going to look at tomorrow and Friday.