STR with a 2nd Home Loan. Mortgage Fraud?

[Rob Hilton]

Hey BP Family, 

Has anyone had issues listing their property as a STR when the loan was originated as a 2nd Home Loan? For those who have done so, have there been accusations of mortgage fraud? Thanks in advance.

[Luis Olivier]

Definitely speak to a lender. However, my wife and I have used this loan for a STR that we still operate to this day. The lender knew our intentions, it is not mortgage fraud. If you satisfy the requirements (usually has to be 50+ miles away from your primary residence and you have to stay there at least 14 days out of the year) then you can do STR. The downside is you can not put it in an LLC if you wanted to do that because it is not an investment property, it is your second home. Talk to multiple lenders.