One final comment I want to make, not every deal that goes bad is fraud or a ponzi scheme. 

Meanwhile I originated a refinance loan in July of 2023 on a nearly identically built housing product and the rate was 6.66%.

This is a good question since I do not want to commit mortgage fraud - my plan was to list it for rent around 90-120 day mark and file a work relocation letter with my issuer letting them know my employment situation has changed to a new location.

This is a smaller, local bank but otherwise all other aspects are almost identical to the larger bank. 

But if caught claiming occupancy when you will not is a pretty serious offense: "Occupancy fraud is akin to banking fraud, where the lender can demand the loan be paid in full.

I’m looking to buy it as an owner occupied primary residence while living in another state but I am open to moving if it is required.Yeah, it's mortgage fraud to make false statements on a loan application or to leave out material information.

Our neighbors, a couple who harbored a narrow vision of neighborhood identity, opposed our mission to rent out our home.

Not to say we'll have that identically, but usually before something bursts there's a heavy run up. 

That's been our experience and with nearly identical cash-flow numbers based on interest rates.

My wife and I decided that we would rent out the house but because we have received a grant for the down payment and closing costs from the city of Baltimore, we are wondering if it’s okay to rent out the property without any issues or they would check to see if we live at the property or we did a mortgage fraud by renting out the property for not living it for 7-12 months.