My key areas of rejections are: any past eviction in last 7 years, past due car payments, judgements/bankruptcies , utilities in collections, address/social security mismatches(I've caught a lot of scammers this way), fake landlord references(usually caught through simple county searches).

I then called the insurance company to get it expedited whom said they do not inspect properties without a claim being filed and they do not inspect properties on behalf of mortgage companies either.

Additionally, be sure to research UBIT and have a plan to get it filed and paid.

It is clear to me that the intent is the property will be non-owner occupied and hopefully that is how you buddy has filed the application.

Just curious if the loan product used impacts how one files taxes? 

The low downpayment primary residence loans certainly have their appeal, but by using them to shortcut the system it will complicate tax filings, tax benefits, and how you cut up the proceeds when you go to sell the property.

This would require a 60 day notice to vacate; followed by the filing for the dispossessory through the court system.It's a pretty cut and dried situation. 

For those not in the industry the reason lenders wont go that low is  really simply a math problem.. if they have to stick to their pricing sale 2 and 12 or so and its a 30k loan.. thats a whopping 600 in points and very small amount of interest payments which are always shared with teh investor or credit line or wall st guidance line they have to   HML make money on the delta between what their capital costs and what they can put it out for.. then you have defaults the cost in many of these Eastern states and time lines to foreclosure is hugely expensive and time lines are forever.. so if your only making 1k or 1500 on a file and have to foreclosure you just lost a bunch of dough. it takes no more time or effort to do a 500k HML at 2 points  10k of revenue to lender and the delta on interest of course is much nicer.

Both of you jointly but filing separately?

I just filed one in Anne Arundel County; tenant is largely behind and has become completely unresponsive.