You’ll sign the usual “I will live here for a year document” (do that, so you’re not committing easily provable mortgage fraud.) and sometimes they’ll ask for a “reason you are buying a new primary”.

You need to narrow it down to a square mile or two of nearly identical properties that you are interested in.

You may be surprised but if you have ever looked through the list of SEC enforcement actions, prosecutions, securities fraud related cases, you'd be shocked to find out that there are infact, very dangerous and sophisticated criminals out there who device all sorts of schemes to swindle unsuspecting investors out of hard earned cash.

One lender indicated that is mortgage fraud and you cannot rent the property at all.

All good advice except none of this really responds to your concern because you truly have no idea who you are speaking to.Considering the amount of money that gets thrown around in real estate, there is a huge amount of fraud in this industry, and you are wise to be wary.

Then you have written proof of where they wanted it sent, that it was delivered, and when they cash it you'll have a photocopy of someone's signature and (presumably) that person would have had to provide proof of their identity when they cashed it or deposited it into their account.

Probably fraud. 

Hi @Lance Bean, as long as your record does not contain a felony for fraud, I would be able to help you out. 

If the OP has the intent to occupy the property from the get go and a broker originates a DSCR loan for them, there are heavy penalties, not just prison for mortgage fraud, but restitution to the lender they defrauded and loss of their livelihood.Advice for the OP, if you're going to get a DSCR loan, go rent an apartment and show that you're living somewhere else and don't move into the property.   

Don’t commit mortgage fraud to save 1-2%.