2nd Home Mortgage & Occupancy Fraud?

[Adam Gonzalez]

Good Morning Everyone!

New guy here. So I was hoping to get some clarity as to getting a 2nd home mortgage and what constitutes as occupancy fraud. I have noticed that many investors, even some who run Biggerpockets, claim that you can get a 2nd home mortgage with 10% down, can use the property a little yourself, and convert the property to an Airbnb investment. This sounds great at first. However, I am hearing that this would constitute as occupancy fraud. My mortgage guy told me as such and other articles indicate the same. Am I possibly missing something here? I am unsure if people are able to pull this off simply by "using" the home for a short period of time. Also, I have heard that you cannot rent a 2nd home, while other claim you can if the lender allows it?

Because I am new, and obviously want to abide by the law, I was hoping someone could shed some light on this for me, especially if they are in the mortgage business, or, you are someone who took out a 2nd home mortgage, converted the property to an Airbnb, and it worked for you. Thanks so much for all of your time! I am sure if anyone can answer this, it would be very helpful to the community.

- Adam