1) Buyer(s) need to qualify for the loan. It is not necessary to disclose who will be living there. It’s either owner occupied or it’s not.
2)Who do they omit telling it to ? It’s not asked. No specific law or ethical code exists
3)YES, THAT is a violation and can be reported to city/county.
If borrower qualifies for the loan, they can purchase the house. It does NOT give them the right to do anything illegal.
Borrowers using stated income loans still need to qualify. If the person signing needs that extra income, they won’t disclose it. They WILL have to have a decent credit score to get financing without a healthy down payment. If they have no down, they won’t get the loan going stated, it will have to be full doc, which means that if they get the loan, they DO qualify.
