Also, most banks will not allow you to "borrow" your down payment, so what you would need to do is get the 50K personal loan and then have it show on your bank statements for two months (without showing the money being deposited, so in reality this could be 3 statements before you have that. 

I came here to say this exact statement.

If he kept the house, then your statement would be correct, because there is no immediate taxation of insurance payout.

Lenders will want to see those funds deposited in a bank or other lending institution on one or two monthly statements.

Also prevented us from making wrong statements on our part which would have reduced the claim.3.  

If you do not have (2) full years of 1099 you can still get approved for a mortgage using a Non/QM program like a "1 Year 1099" program or Bank statements.

These penalties include:Five years in prisonUp to $500,000 in finesEquity Skimming may also result in Conspiracy charges, specifically conspiracy to commit bank fraud and false statements to influence a financial institution.

Quote from @Ryan Brown: Quote from @Tim Delaney: Hopefully your lease has "right to quiet enjoyment" clauses which would give you grounds to evict, however if you don't have audio then you will be reliant on the other tenants providing statements or testifying at the eviction hearing.

(We had a boat as an AirBNB and the plumbing would clog very easily and we had to state a similar statement and it got us out of refunds and bad reviews) hope that helps! 

The guy has already stated that he doesn't live there so that alone proves that he knows that was never the intended use (is their a police report or statement for your file?).