Investors are slowing in Illinois I have noticed lately and I have also seen a tremendous amount of capital repair declines from Freddie Mac and Fannie Mae in the area.

@Russ Swan I have bought several properties with only $500 in Earnest Money with Fannie Mae.  

Hoping anyone that has bought from Fannie Mae can help on this.  

That's an agency loan, backed by either Freddie Mac or Fannie Mae.

That laziness is why you see so many FHA buyers out there, though some are in FHA because they have bruised credit as well.Here's Fannie Mae's commercial for HomeReady.

Fannie Mae has an exception for occupancy when a son/daughter buys or finances a home for a parents who are unable to work or unable to afford the loan on their own, so you would not have to live there with your parents.You will have to qualify for both their housing payment (the mortgage) as well as your housing payment (even if you currently rent), but the payments should be reduced quite a bit if there's just 100k remaining.  

I read on another post that Fannie Mae forbids using loaned money on the down payment.

No longer the case: about six months ago I had a doctor with a contract guarantying him $20k/mo, but his Fannie Mae mortgage qualifying income was $0.00 per month because his employer gives him a 1099 instead of a W-2 and it's only been 8 months on the job.

It's just a different animal and from my observation these lenders tend to push much more to have a larger percentage of your portfolio with them vs residential Fannie Mae/Freddie Mac residential lending guidelines.However, to be totally honest, this is a rare scenario where the above is the constraining factor to you growing and taking on these assets/projects. 

Recently I spent a few months searching for financing now that I am maxed out with my 10 Fannie Mae loans.