Is it possible to not live on the property for a year? Wouldn't you just simply refinance the loan into a convetional Frannie/Freddie?
Certainly, @Conan Fox . The constraint here is that you'll need to achieve a substantial amount of equity in that year. If you purchase with a 3.5% down loan and then one year later are trying to refinance onto a 15, 20, or 25% equity loan, by the time you factor in closing costs you could need to come up with as much as 24%!
So, if the market has pushed WAY up, if you have done some major value-add, or if you have access to a loan product that would let you refinance at 95% LTV AND you have achieved an equity bump then this could be a workable option. Otherwise it isn't very cash-effective.