Bank owned properties like HUD, Fannie Mae, and Freddie Mac, being government owned, have policies/rules that for the first 7-15 days of a listing they will only sell to owner occupants (buyers committed to moving into a house shortly and having it as their permanent residence (over 6 months per year). This is a matter of public policy and the law. The objective is to stabilize neighborhoods with owners not renters. Neighborhoods with more that 50% rentals are usually lose value.
If you lie, here is what Fannie Mae says "In the event that I do not occupy the property as my primary residence in accordance with the above certification, I shall pay Ten Thousand Dollars ($10,000) to Seller as liquidated damages, which amount shall be in addition to Sellerâ€™s right to retain any earnest money deposit and any other funds then paid by the Purchaser as liquidated damages pursuant to Section 19 of the Real Estate Purchase Addendum and any other remedy available to Seller at law or equity. Additionally, I agree to pay Sellerâ€™s reasonable attorney fees and costs incurred by Seller in enforcing its rights hereunder."