@William HustonSo you’ll barley get the 1% rule if the all the numbers are accurate .seems like your typical marginal deal .

However, your agent can ask the seller's agent if there are any rules about rentals prior to making an offer - sometimes they will know sometimes they won't. 

All payments under this Agreement are applied first to accrued interest and then to the balance of the outstanding principal.

The same question applies for paying off the mortgage early - you have relatively cheap money that you're getting from the loan so you might as well let it ride. 

Since they haven't actually applyed would we be stepping afoul of any laws if we were to just ignore them?

This time around many people are no longer applying for traditional jobs interviewing all over the place.  

I suspect the only other thing to do is some sort of quiet title action and get a judge to give you a ruling so you can take that to the new title company..

Then if you want to slough the numbers with a justification of how house hacking reduces your monthly mortgage/rent, at least you're armed with the analysis for both scenarios, and can make a qualified decision.Roughly, $500k purchase with $4000 monthly gross rents doesn't hit the 1% rule of monthly gross rents being 1% of the purchase price.

@Bruce Harding,The $50K limit applies to participant loan you personally can take from your 401k.

Make sure that it at a bare minimum meets the 1% rule....although often you will see it is higher than this.