uhh yes this is totally occupancy fraud, and your LO should know better than to be advising you to go about it this way. he's right that people's lives change and situations come up, but to guide you in this direction seems to be negligent behavior at best, fraudulent at worst. consider the implications if the lender found out you had no intention of moving in, but knowingly took out an owner-occ loan.... the note could become due and payable. like, all of it. immediately. worth the risk for an additional 5% cash-out?

Thomas Miller -- RE Agent -- zillow.com/profile/gtmiller0 Jason Zamoiski -- Mortgage Broker -- Spoke with the Seller to convince them I was someone worth going with, beat out higher other offers due to this -- atlanticcoastmortgage.com/lo/jason-zamoiski/

Sounds like a disconnect between the LO and the underwriter.

I'd sell or LO this. 

., they are NOT the same person.It's best (easier and safer) when you sell on a LO to actually have two different people:1 - The lease is a regular tenant. 

The most likely situation is that you would be fine doing all of this, because you would not get caught, but it is probably worth a "hypothetical/ my friend has ED" style conversation with your LO to see how much risk you are taking on.

Hope this helps, This is definitely something doable by any lender, most LO's dont deal with investors though so they dont nderstand the Ins and outs of the guidelines as they relate to investors.

Recently we met up with a LO who pre-pre-approved us for a loan.

Our loan ended up falling through and the sellers agent sent me a contact for a lady who works at a bank who is good at “rescuing loans” I called that lady and I also called Amerisave where a close friend is a LO.

That's most definitely NOT a Lease Option.A LO has no DP, and doesn't charge interest.