I want to purchase a home. Are my chances greater for an approval if I rent the home out or reside in the home myself?

It is difficult in today's market to qualify for a loan at all.  It is my opinion that lenders would be more comfortable making a loan knowing that the borrower would have a significant investment in the security property.  A significant investment is not limited to a financial investment.  If the security property is the borrower's home, the lender can be assured that the borrower will have greater reason to take care of it and to not risk losing it by failure to make payments.