do I have to live in the house fulltime?
Not necessarily. Are you thinking of it being a vacation home?

trying to decide on fha versus a loan with fannie mae - help
I would say your best option would be to break it down both ways and see which one benefits your needs. Look at them side by side.

I will give you our corporate mailing address:18500 Von Karman Ave., Suite 1100 Irvine, CA 92612

What is the mailing address for BAC Home Loans servicing?
Our branch mailing address is 1393 Clay St, SE, Suite B, Albany OR 97321

1st home purchase advice needed
The Corvallis area is definitely a great place to have a rental. They seem to never sit for long if at all. What price range are you looking at? How much is your down? I'm asking this question to calculate payments etc for you to show you the difference.