After all, you DID lead the seller to believe you want to buy it:)

I believe BP has a book on the subject too - I have not read it yet, but have read ALL the other ones available here and think they are all great, easy reads.

I noticed a disturbing trend--rentals which are priced at a level I didn’t believe to be profitable are staying on the market an extremely long period of time.After a little digging, I found several neighborhoods which appear to be completely saturated with rental homes.

I do believe the market will soften again as it always does but I do not think it will get hit as hard as the last bubble.

Yes this will be a house that I occupy, I am in a dilema whether to believe what Statefarm says “our policy is better than an HO5”

Thanks Sean and Don, I believe you're right.  

Most people would call them foolish, but I don't believe in foolish questions, only foolish people.Who was the first real estate investor of all time?

I don’t want to follow this route and believe the seller will actually close.

They also didn't believe in the 1 year seasoning rule(The property has to be rented for one year) that a number of other lenders hold as policy.

I don't believe its a safety issue, but I don't want to get sued and I don't want to break any laws.I appreciate your input.