Do I have to put 20% down on a condo so that I don't have to live in it for 1 year before renting it out to tenants?

This is how it works in my experience regarding getting a mortgage:

• Owner occupied. If you put less than 20% down you have to get PMI.

• Rental. You are required to put 20% down. Not all lenders will make loans for rental property.

Now some people start with a owner occupied and change to renting the property years later. They do this when they have to move for a job, or they outgrow the house. When that happens the lender doesn't require the owner to increase the equity by making a big payment. They also don't terminate the loan if they don't write loans for rental properties, they allow it to continue.

The loans I have had, required a statement that I would be occupying the home soon after settlement and planned to occupy it for al least x months afterwards.

Check all the settlement documents, there should be a statement regarding required occupancy. You may have even signed it during the application process or during the approval process.

If that lender requires a year of occupancy then that is what they require. If you know you are never going to live in the place then you only option is get a loan for rental property, unless you want to lie or commit fraud.