Primary Residence Mortgage w/ Non homestead taxes

[Carson Rogers]

Hello all,

I’m in need of some help from the bigger pockets community. I am about to buy my first rental property and I’m telling my mortgage company that it is my primary residence so that I can put only 3% down instead of 20%. I am going to switch my taxes to non homestead so the city knows I am using the property as a rental. Will I run into any legal trouble? Has anyone else had a similar situation? Let me know.

[Bill Hampton]

If you do not live in the house for at least one year you are committing mortgage fraud, which is a felony. You have also posted your intention to commit a felony on a public website. 

Don't do it, it's not worth the risk. 

Live in the property for a year, then make it rental, or tell the bank the loan is for an investment property and put 20% down like everyone else. 

Good luck.