Of course the fewer you have in the unit the less ware and tare but you can't discriminate based on it for family status with children to be more restrictive than your local housing guidelines. 

Covid did lower demand for student housing, but this will change in the Fall as Temple University has restricted on-campus dorm offerings.  

Reference: https://singlefamily.fanniemae.com/media/25286/displayHello,Regarding recent Fannie Mae directives, I am seeking to understand impact that an investor could observe ( on loan-amount, down-payment, DTI etc..)1. restrictions is a 7% limit on our acquisition of single-family mortgage loans secured by second home and investment properties. - how does it translate in simple terms :)2. be underwritten with Desktop Underwriter(DU)- What impact would be possible with above process change.Thank you.

So, I read earlier that Fannie is going to restrict second home and investment loans to 7% of the total portfolio.  

You should still be able to get the 20-25% down loans, though.The government seems to be actively trying to curtail small investors.  1st they restricted condo purchases in vacation markets and now this. 

“One of those restrictions is a 7% limit on our acquisition of single-family mortgage loans secured by second home and investment properties.”Fannie Mae said that the amendment has prompted changes in its eligibility policies.

You should make sure it’s allowed—most have rental restrictions and especially for STR.

Thoughts on how this will effect rates?

The condo is empty and we are not restricted to certain times or notifications when we send inspectors.I’m actually not worried that the crack is bad, or I’d already have walked away, but definitely want a professional opinion regarding it.Doesn’t this constitute a breach by the Seller and I can recoup my inspection expenses?

The point of my post is no decision comes without cost, some decisions which seem good now may restrict your options in the future.