Lying on Mortgage Application to Get Better Financing for Rental Property
Many lenders will offer better interest rates on their mortgage loans to homeowners living on their rental property or are first-time home buyers.
Better Financing if Owner-Occupied
Lying about your intent to occupy the property to qualify for lower mortgage interest rates is fraud and a federal offense. There are severe penalties for your misrepresentations on the loan application. And, government officials do prosecute these types of cases. Often, this information is uncovered if a default on the loan occurs or a foreclosure procedure has been enacted. Credit obtained through fraud may not be discharged in bankruptcy.