Home equity loan lender, primary residence

[Ethan S.]

Hello BP,

A credit union I use offers some great rates on home equity loan currently but it says that the home must be a primary residence.

I purchased a townhome a year ago and took out a mortgage as a primary residence. I have been living with parents though and rented out the townhome. How do banks verify that its my primary residence when I take out a home equity loan?

I haven't filed my taxes yet but I am going to claim the property as an investment so my DTI gets better for future investments.

Is there a legal consequences if I take out the home equity loan?

Thank you!