A friend of mine is also a real estate investor. He was telling me that when he closes on a property he says he is going to live there (even if he intends on renting the property) because he can get a lower interest rate through the lender. He says that he was advised to do this by an agent, that they have been doing it for years and no one ever checks up on it.
Has anyone done this before? What are your thoughts. Can you get into trouble?
Krissy,
Glad to meet you.
This was a very good question to ask, as you must have known there could be a problem.
This link will fill you in, pay special attention to paragraph 11.
http://www.hud.gov/offices/hsg/sfh/buying/loanfraud.cfm
Don’t put yourself in harms way, not a good way to start your investing career.
John $Cash$ Locke
Thanks John. I really appreciate the info. I wasn’t sure if it was illegal. It seems that a lot of people are doing it, or they say the don’t do it with a wink.
THANKS AGAIN!