It was originally build as a mother in law property with two identical 1200sqrft 2 Bedroom/1 Bath units.

It was originally build as a mother in law property with two identical 1200sqrft 2 Bedroom/1 Bath units.

Could this be considered illegal or fraud in any way??

Preparing to buy my second home with a partner, we were told by our loan officer we could use and fha loan if we are considering moving into the home, but after reading up on it have found that may be considered mortgage fraud?

Not to promote fraud or anything, but if you are spacing out your work then maybe you won't need to pull a permit.

Too many stories of how the buyer lost their cash in the deal and the deed was forced back to the owner, should the owner hire a crafty attorney and charge you with fraud, misleading the seller, blablabla all non-sense, and all solved by only doing creative deals where the owner/occupants move out prioor to closing.If I guess corrrectly; this guy is a nut, wishful thinking and you should make a written offer,  based on him moving out prior to closing.  

The identical house can be worth $10 million or $29,000 depending on where it is located.  

I know big maybe but lets say two identical offers come in with letters and pictures of the family making an offer.

@David Adams you are publishing on a public forum that you are considering committing mortgage fraud.

@Paul Henning Cost per sf is a notoriously bad predictor of value, unless comparing nearly identical properties like two condos in the same building.