If you are getting a loan as a primary residence you must intend to occupy the property as your residence. if you buy and say you are buying it as your residence but the whole time you are planning to basically not live in it, that is  lying and could get you in trouble for mortgage fraud. you may not get caught, but if you do it is taken seriously, beside legal trouble lender could call the mortgage due if they found out you were lying.

I found one called ( Rainbow Knolls) old subdivision platted in the 20s but because it was under one common ownership  ( 104 lots) assessor on the assessors plat map showed it as a 15 acre tract.. we made an offer like it was one building lot.. then we got our HML to put 104 individual loans on each lot to the tune of 3k per lot we used that 300k to build all the roads and infrastructure.. we recorded each loan individually which caused the assessor to reestablish the plat. without having to go through the platting and land use .. planners did not like it I can tell you.. but now a days out west this is quite common and there are easier ways to do this.. in Oregon for instance they call it a lot confirmation.. there are all sorts of shadow lots lying underneath lots in the city.. takes 60 days and a few hundred bucks and a current survey and you can split lots as long as there is a shadow plat that was recorded back around the turn of the century. 

Smokers lie all the time to landlords promising they will only smoke outside.

We know she's lying, but what options do we have other than reporting her to the real estate comission?  

I have had my share of nightmare experiences with contractors who lie, cheat, and/or are incompetent.

The answer lies in the contract you signed, which none of us here have read, and with what your real estate lawyer tells you.

Think "benefit business"only, anyone that would screw you like this is not your friend, she is lying and you should know that.

and they told me they were bringing on another partner (Who I think lied to them and stole more of their money).

Know when to walk away - the numbers don't lie!

(Cannot lie, I felt a little guilty.)