If someone is telling you that they are your employer but refusing to issue the W2 that any regular employee is entitled to, they may be committing tax fraud.- If you truly are a self-employed independent contractor, then declare your income honestly when you do your taxes.

Looking for confirmation from people if I will be okay as I financed thru FHA intending to owner occupy and I didn’t jump the gun/commit fraud?

I’m using Zillow rental tool for a background check, my contractor who i know for a couple years now has referred me this guy who is his cousin, who is probably an illegal alien, he Looks like a nice guy but its not bringing up a report, because there is no  information on the report, I couldn’t find the numbers he gave me on ''Been Verified'' either .However its says on the Zillow application ''IDENTITY VERIFIED'' ( not sure how it works if they have no report ) .can i trust my intuition and the referral of my contractor?

This scenario could be considered fraud because the wholesaler entered into a legal contract with no intent of actually performing.

And agree with you, we need identity verification, criminal records, eviction history, income verIfIcatIon, credit check, etc. it has to be more than just a credit score or something basic like that.

I'm going to talk to my bank next week about these kinds of deals because it seems to me that it's possible to get sued for fraud by the bank if they were to find about I was doing such a deal.

On the other hand, the Texas Fair Housing Act is identical to the Federal Fair Housing Act.  

You just can't acquire the property then turn around and use it as a rental, then acquire another property with the VA Home Loan because that is considered as mortgage fraud. 

Moving out prior to 1 year, or not moving in at all could be construed as mortgage fraud so be careful with that.

I have had a lender tell me to my face they weren’t going to help me commit mortgage fraud when I tried to buy a new primary to rent out my old one.