Mortgage Fraud?

[David Albertson]

Would this be considered mortgage fraud? I'm in the process of purchasing a rental property ($33,500) and the mortgage company is requiring me to put 10% down. The mortgage is a "construction loan" so I will have to pay to have any work done then go to the bank with receipts and they will cut me a check. My question is if I start my own remodel business (sole proprietorship) and do the work myself, would I be breaking any kind of law? Basicly what I want to do is buy the house, make the repairs and roll all the down payment and repair costs into a 1st mortgage. Am I going about this all wrong?

Thanks.