Vacation home and AirBnB

[Taylor King]

I am in contract on a vacation home that I will also use as STR. I plan to use conventional financing. The lender stated that if I say it is going to be my primary house, then the down payment is only 5%. Where as if I say it is going to be a vacation home, the interest rate is 10%. What implications are there when saying that a home will become your primary home? If we split time between the two house does it matter if I make the vacation one my primary? Does it effect taxes or where I send my kids to school if I still have my current house in the school district I want to send them in? If we did end up staying in our current house way more often than the vacation home, are there legal implications? I really just want to lower Down payment and better interest rate but want to make sure I am not going to commit some sort of fraud. Does anyone have any options on obtaining a vacation home for 5% (or less) down?

[Taylor King]

@Malcomb Stapel Thank you. It definitely sounded fishy. Thanks for the advice. I will avoid that and probably that lender from now on.