Lying on Mortgage Application to Get Better Financing for Rental Property
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UPDATED: Jul 16, 2021
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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.