My purchase was an HOA lien on an apartment.

Hey Denise, Are you looking to do a refinance loan or a purchase loan?

@Danny Celestin- thanks   1) yes - there is a large  difference bwtween  investment property and  preimary residence pricing  2)  assuming the 2 quotes provided are for  investment  properties - these are not too bad for a 2-4 unit purchase 

I'm considering purchasing turnkey through them.

He should have been able to find at least 80% LTV.  80% LTV is still a norm on purchase, but it's about what can make the numbers work which many times these days constrains LTV. 

I'm wondering what will the possible penalty to be if the property we purchased not as our primary residence by using VA or FHA loan after lender found out?

Depending on the lender for a DSCR rental property loan, rates will be about 0.125% to .25% lower if you put 25% versus 20% down on an investment property purchase if it's the same borrower credit score and profile being analyzed. 

Are you looking to purchase (and fix) the 2nd home?

Your offer to purchase should include a requirement that the Seller provide all documentation and agree to sign an estoppel certificate (also called an estoppel form or agreement).

What is the purchase process like.