I have talked to a few lenders and real estate agents and they have all advised people that it was OK to buy a property with an FHA loan and rent right away. I know legally it is not OK, but everyone has heard stories that there wouldn't be an issue, assuming payments made each month and on time.
What are your thoughts on that in reality? Is it acceptable? Has anyone done it before?
Loan fraud. Have at it!
Yea, it is mortgage fraud. I am told they randomly run address and utility checks during the first year to make sure you live there
A conviction for a single count of a federal mortgage fraud can result in a fine of up to $1 million. State fines can range from a few thousand dollars for a misdemeanor convictions to $100,000 or more for felony convictions.
Bank fraud is only a federal offense. You can choose to be a cheat and easily verifiable liar, if you are okay with that. As long as a lot of other people are doing it, its okay right? <sarcasm>
You are the only one who has to look at yourself in the mirror every morning.
Search for this topic. It comes up all the time.
Something Dave Ramsey talks about in his training is what characteristics he found consistently amongst wealthy people he studied - personal integrity was number one. Does that help you understand what you are considering?
To be clear, I am not considering doing this.
I have to imagine though that any young investor may consider it. Just wanted to start another discussion on the topic.
Appreciate all the feedback!
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