Owner Occupant Rules (non-FHA)

[Jose D.]

So my GF owns the current house we stay in. Browsing realtor, I notice that a house over on the next street has come on the market. 

I don't have the 20-25% down payment to buy it as an investment property but I start wondering...what if I move into it as an owner occupant? The plan would be for both of us to regularly spend time at both houses. Spend the night at her house sometimes, others at mine. I would also like to airbnb this new house from time to time to help with my mortgage. It will already be furnished and I will be at the GF's house some nights anyways so might as well try to make some use of it. San Antonio is Military City USA, and I'm not too far from Lackland AFB, so I was thinking of airbnb'ing it out to families of airmen that are graduating BMT.

Would this be considered mortgage fraud? I'd like to think that it's creative rather than illegal. The loan wouldn't be FHA if that matters. I got a decent rate from one of the online brokers, and I will be putting down a 10% down payment by choice. It wouldn't be your typical 3.5% owner occupant FHA down payment.

[Will Pritchett]

@Jose D., I think that's a great plan to get your foot in the door.  I believe Lackland has a graduation every week of the year and a lot of families want to come see the ceremony.  Seems like a good area to find affordable houses that may still work for Air BnB.  

Side note: Some friends in San Antonio recently shared a story of a guest who let water overflow from a toilet and ruined the flooring.  Air BnB reimbursed them for the entire amount of damages.  I thought that was pretty cool to know.  

Best of luck,

Will