Renting out 'HomePath' properties ?

[Stephen S.]

Say I buy a Home Path (or other rental restricted program) property.  That is:  a property which is intended to be sold for own-occupancy only - at least for some initial period of time.  Who is it that monitors that I do not simply rehab and rent out the house?  How would anyone official know that I had immediately rented out the house?  Or anyone at all except the tenant and me. <g>

And beyond that - suppose it is discovered that I have disobediently rented out the property.  Then what?  What is the penalty?

[Wayne Brooks]

In the Fannie addendum you're acknowledging a $10k penalty for doing so.  Don't know about Fannie's follow up, but your competitors may drop a dime on you.  I have spent a little change in this arena.