HELOC Mortgage Fraud?

[Eric Haque]

Hi all, 

QQ, I'm interested in taking a HELOC against my primary residence to utilize the funds to purchase a duplex (house hacking) which would then become my primary residence. In inquiring on my financing options, I was told that this would be considered mortgage fraud due to the fact that I would be signing a new Owner Occupancy Attestation at the time I take the HELOC. Therefore, this would mean I would have to stay in my initial primary residence for another year and would not be able to move into the duplex (otherwise it would be mortgage fraud).

Looking for further insight on this as this was new information to me. 

Side note - If this is accurate, I would greatly appreciate any other creative financing ideas. Thanks in advance!