Closing costs and prepaid expenses must be paid by the borrower in cash or paid through premium pricing or by the seller, subject to a 6 percent limitation on seller concessions. -- FHA mortgage insurance is not free.

This is not legal advice, but it's a way for you to make sure you get your money.

Is this legal, and of course this is with their permission...what kind of incentive would you give the previous owner for doing something like this?

I'm looking for a company that understands the wholesale thing, a lot of them don't think its legal, who can help me with MLS lists, title, etc.

If he's a professional and has done this before he probably has a reliable financing source.Don't get caught up in the legality mumbo jumbo.

I looked at a lot of services, and finally went with a prepaid Verizon Wireless account.

This would allow you to post a low rent for people with perfect credit (very few will even be close) and then once you run there credit you could come back and say they there score is a 610 so there rent would be like $550 a month.Would this be legal?

Rich,Is there a way around the owner occupied clause legally?

Yes, technically/legally you can.

i mean ok.. loss of use but depending on how long of a time frame its not worth the price difference in the policies. most insurance reps unfortunately really dont know their products inside and out.. and neither do alot of market reps and even some underwriters.. there are loop holes in insurance policies just like every other legal document.