Understanding Mortgage Fraud and Loan Types

[Benjamin Walter McPhail]

If you buy a home and decide you would like to rent it out soon after its purchased, can you go back to the lender and ask to change the loan-type to an investment to avoid committing mortgage fraud?  If so, what is usually required?

Right now my lender has a program that only requires 15% down for an investment property along with reserves for any other mortgages that you currently hold.  If I paid 5% down can I pay the additional 10% later on to change the loan type (maybe 2-3 months after purchasing the home as owner-occupied) or is this something that may be different from lender to lender?