Hunterdon NJ man accused of $1.5 million real estate fraud scheme (mycentraljersey.com)

https://www.cbsnews.com/amp/texas/news/charles-roe-lewisville-man-arrested-in-reported-home-buying-fraud-scheme/He allegedly forged bank financial statements.

It is meant to be your primary residence, check with the lender but using it as a rental may be mortgage fraud - do not recommend. 

This means that absence fraud, the mere fact that the issuer complied with the safe harbor exemption will be a successful defense against a disgruntled investor lawsuit.

I'm inclined to think that the underwriter is more inclined to keep their job and not be under federal investigation for motgage fraud, than to satisfy your investment desires and overlook your unemployment.

An actual copy of the deed/deed of trust was pulled and it reflects two names, one of which is identical to his.

In fact OP you may have spoken to me 3 months ago (I wouldn't remember), and I would have told you in advance about how this sort of thing can happen, so you "shop around," find someone else offering exactly what I offered, from the exact same very small pool of lenders, identical rates/fees (+/- rate movement over time), they don't include all the caveats/warnings that I did, so you think it's more reliable or whatever, fast forward 2 months, and boom here you are making this thread (incidentally, this means my "incentive" is to just drop all the warnings and caveats, and then act all surprised when exactly what happened to you happens, like I didn't know it was a possibility from the get-go). 

Lying to a mortgage company about your finances can be grounds for mortgage fraud, which in many jurisdictions (maybe all?)

This article may be instructive, at least for purchasing in Florida, though I believe if you search "equity skimming in (insert state name)" you'll find something similar for your state.Equity Skimming – An Investor’s Guide to Avoid Trouble – Fraud Lawyers Florida on Consumer Fraud

A lot of "fraud" lawsuits happen because people try to cut corners, don't understand the process or weren't clear about enough in their agreements.