It’s probably mortgage fraud, wether it falls on you or the mortgage person. 

He was in the same boat as you, and his budget was nearly identical to what you described. 

@Laura R.Keeping secrets from the bank is known as mortgage fraud.

@Andrew Kennedy...you should be able to  wire  funds  from any bank to any other bank ...be  extremely careful and  triple  check  the  wiring instructions  you are  provided   with  a  call  to the  parties  involved  (  as there is a ton of  wore fraud  happening for the past  several yrs) 

If you want to keep a rental there, you can then buy an identical house on the island for $900k, your tax basis will be $900k (instead of ~$450k), and you won't ever have to pay tax on that appreciation.

The appraiser marked one of the bedrooms as a "den", even though it has two twin beds in it, a closet identical to the other rooms, and windows along an exterior wall.

reach a reasoned conclusion as to the identity of the heirs and the amount of their respective interests.

guvment removed banking regulations in the 2000s and that allowed for audit failures and fraud beginning to end in loan applications to MBS tranches to credit default swaps to derivatives to derivatives of derivatives and caused the meltdown called the Great Recession.

You have a statutory defense against lawsuits filed by disgruntled investors (absense fraud) so lawsuits would be highly unlikely as attorneys won’t take contingent casesThe trade off is cost, $5,000 - $10,000 vs. $1,000 - $2,000.So that’s the legal aspectsAs for marketing the offering you have two main choices ( and many sub choices)Either utilize an existing crowdsourcing portal and pay them 8-15% of the amount raised, or set up your own site or portal and pay the upfront costs.  

'Choosing' not to report your expenses specifically to qualify for another loan is likely mortgage fraud.