Would the following scenario be mortgage fraud?
Acquire a property 5% down conventional loan on a property that is in a state where I work. I plan to live in this property for a year and then rent it out. One month later I get a job with a different company in a different state about an hour away from where this property is located. I decide to get an apartment closer to where my new job is and rent out the property that I acquired with a 5% conventional loan.
An hour commute is not that far that it requires you to move into an apartment.
@Joe Conklin your talking about an FHA loan that requires owner occ.
you may rent it and move if you can establish that this happened ...
People get transferred all the time. Its all about intent. If you set this up to do this then yes if someone wanted to really dig into it probably could prove it was intentional.
tread carefully people do go to jail these days for defrauding Uncle.
I can't speak on the financial or real legal side, just on my personal ethical side.
Be true and honest and do what you say. If your real plan is to move in a month you are not being honest with your lender/broker/state tax groups/HOA's etc. Sure there are provisions for "unforeseen circumstances" but if you really know they are coming you are playing a game. Owner occupant rules and conditions are setup to help people get into a "home", not to help people invest. Investing while following the rules ... IE living there for a year while you repair and prepare for sale is one thing. Saying you are living there and then moving on in 30 days is another.
My opinion of course just my 2 cents.
Good luck in whatever you decide.
@Joe Conklin If the new job is truly out of the blue, then you are in the clear. Even if it happened the day after you close.
Since you are asking, my guess is that you are planning this out. Which is mortgage fraud, a federal offence.