Is it Gaming the system or illegal?

[Chris Brenner]

Alright before I start, I dont want to commit any crimes or do something illegal..

Recently purchased a duplex a couple months ago under a VA loan(I understand that you're supposed to live in that residence a year). I am actively searching for deals in my market and one has seriously come up. It's a HUD home for sale, but the caveat is it's only being sold to "owner occupancy, government institutions or non profits." The duplex is in need of drastic repairs and my thought is to apply for an FHA203k (purchase plus improvements with about 3.5% down)(could even take a few months to rehab it).

Would it be wrong/illegal to offer on the house make it my "primary residence ”and utilize "my" side as an airbnb? Is this using terms to my advantage or not? I appreciate in advance any thoughts on this subject.