Telling Lender Primary Residence but Renting it Out

[Wayne Jordan]

We're living rent free right now due to in-laws being very generous with their retirement home and allowing us to live in it. Our first house we're renting out for a nice income. We want to get a second rental home, and would like to put as little down as possible. To put the least amount down we would have to call the next house our Primary Residence to only put 5%-10% down, but don't intend to live there. I've been warned this is mortgage fraud and we would have to tell our lender that it is an investment property. Does anyone have any experience/advice on doing this? Another possibility would be to call the next house a second home, which requires less down then an investment property but I think this is the same situation--deceiving the lender.

Thanks,

Wayne