However, if the previous owner falsified the tenant's estoppel certificate, well then there may be a case of fraud there. 

The sharks will deliberately sell a bad property to out-of-state investors, even to the level of committing fraud and worse.

Let's run a $500k scenario both extremes, 3.5% down FHA and 20% down conventional.These are CA numbers for things like prop taxes, but the concept should carry over identically.Let's pretend yours is a market where sellers do not frown on 3.5% down FHA, and let's pretend closing costs and/or what you can negotiate with the seller are identical and can thus be ignored.20% down: $100k down, PITI $2600/month.3.5% down FHA: $17,500 down, PITI $3400/month.FHA is $800/month more, but you got to keep $82,500 in your pocket.The FHA scenario where you pay $800/month to keep $82,500 in your pocket is mathematically very close to the following:3.5% down, first mortgage 80% LTV, 2nd mortgage for 16.5% ($82,500) hard money at a rate of 11.6%, interest only.

FNAM wants to put owners into homes, so if you can live there for a year, you may get the property over another investor.Please note: Saying you are going to live there, but not actually planning on living there is mortgage fraud, which is a felony. 

Evelyn Roper in my town of Reading Massachusetts house identical to yours would be well in excess of $600,000.

We went through an almost identical situation with Freddie Mac on a house where five bathrooms, the laundry room, the AC compressors, and a handful of walls were decimated by copper thieves.

Robert Leonard Jim Struthers is a pseudonym I operate under on most forum based sites, because I am not always comfortable giving out my true identity without first knowing the general nature of a forum and its members.

The 2 million route is money out of your own pocket.The American Dream and 401Ks are the biggest frauds perpetrated on Americans.

You can move out prior to a year and rent it out but if someone asks and you can't prove "intent" you could get in trouble for loan fraud.

This is a great read on mindset and knowing your identity that I came across today on LinkedIn...https://www.linkedin.com/pulse/1000-hour-realtor-afra-sanjari