Anyone who disagrees is kidding themselves.

I also disagree with the original quote from the perspective of a homeowner and ABSOLUTELY disagree with it from the perspective of a rental property owner (at which point leverage is even more valuable)."

Then they will tell you, if it wasn't approved, how much they disagree with determination and to try again later.

While I don't disagree with Ben Leybovich about calculating a cap rate, its VERY dependent on an ESTIMATE of NOI.

Only thing I disagree with is that you'll want the payment to be on the HUD-1.

I'm going to disagree with this to some degree...There are legitimate reasons to downgrade a home -- anything from new financial situation (where you plan to sell the original, nicer home) to new family circumstances (kids went off the college and don't need such a big house).Lenders will certainly scrutinize these loans more, and they will likely ask for justification of the purchase (perhaps even a written letter indicating that your intent to really move into the new property), but if you can reasonably justify why you're downgrading, the big lenders shouldn't have a problem with it.

I am not disagreeing with the other guys, but a few hundred bucks seems pretty light on the cost!

As in saying a lower PTR ratio is the better buy. something that 99% of the people on this forum would wholeheartedly disagree with.

I would have to say that I wholeheartedly disagree with you...I think that anywhere that you go in the world that you will always have a reliable (but slightly variable) percentage of people who will do whatever they can to not pay the 5% commission to a realtor.  

@Devin Scott, I've got to disagree with several of the other posters.