That's an interesting scenario. Please keep me posted on what happens at the end. Here is what I know and I hope that helps:
1. Fraud is something you do intentionally. So they can't accuse of fraud. Just as you said - circumstances changed, you found a perfect house where you will live on your own and wouldn't share the same building with your tenants, rates are low and you have the money - so you changed your mind and you went for it.
2. I don't think you should, unless they ask you to fulfill certain conditions.
3.I don't believe so. You just have to declare the income at the end of the year as IRS cares about taxing you.
My 2 cents on here: Don't stress out. Just as you said - rates are still pretty good and you have a short window to take advantage of that. What I would do is find a local credit union, and also go to a big local bank, and on top of that ask a friend who recently bought/refi-ed a house for her lender even if she lives in OH or TX. Most lenders can do loans in all the states. They can do a soft credit check, which wouldn't reflect on your credit report and give you a quote - this way you can compare closing costs, rates, discount points (if worth it), etc. But make sure at the end you get the SFH you want!
