{"@context":"https:\/\/schema.org\/","@type":"BlogPosting","@id":"https:\/\/www.getloans.com\/blog\/occupancy-fraud-what-is-that\/#BlogPosting","mainEntityOfPage":"https:\/\/www.getloans.com\/blog\/occupancy-fraud-what-is-that\/","headline":"Occupancy Fraud? What Is That?","name":"Occupancy Fraud? What Is That?","description":"Hi, it is Brian Martucci doing a video blog from the beach. I am in Manhattan Beach, California. Take a look. Beautiful, is it not? So, today I want to do a video blog about occupancy fraud. By occupancy fraud I mean somebody that says that they’re going to live in a property as their […]","datePublished":"2012-04-30","dateModified":"2023-11-15","author":{"@type":"Person","@id":"https:\/\/www.getloans.com\/blog\/author\/brianm\/#Person","name":"brianm","url":"https:\/\/www.getloans.com\/blog\/author\/brianm\/","identifier":2,"image":{"@type":"ImageObject","@id":"https:\/\/secure.gravatar.com\/avatar\/b03dd1a5c12d48f4023463adfa5dbd6d38ebf6f4d842bd8f8d55ec71cb0ca275?s=96&d=mm&r=g","url":"https:\/\/secure.gravatar.com\/avatar\/b03dd1a5c12d48f4023463adfa5dbd6d38ebf6f4d842bd8f8d55ec71cb0ca275?s=96&d=mm&r=g","height":96,"width":96}},"publisher":{"@type":"Person","name":"Brian Martucci","image":{"@type":"ImageObject","@id":"https:\/\/www.getloans.com\/wp-content\/uploads\/2026\/06\/brianmartucci-getloans-logo2017.webp","url":"https:\/\/www.getloans.com\/wp-content\/uploads\/2026\/06\/brianmartucci-getloans-logo2017.webp","width":400,"height":70}},"image":{"@type":"ImageObject","@id":"https:\/\/www.getloans.com\/wp-content\/uploads\/2012\/04\/fraud.jpg","url":"https:\/\/www.getloans.com\/wp-content\/uploads\/2012\/04\/fraud.jpg","height":1357,"width":1920},"url":"https:\/\/www.getloans.com\/blog\/occupancy-fraud-what-is-that\/","video":{"@context":"http:\/\/schema.org\/","@type":"VideoObject","@id":"https:\/\/www.youtube.com\/watch?v=gejiXX3iZgA#VideoObject","contentUrl":"https:\/\/www.youtube.com\/watch?v=gejiXX3iZgA","name":"What is Occupancy Fraud? Mortgage Underwriter Red Flags | Brian Martucci Mortgage Lender","description":"http:\/\/www.GetLoans.com | Explaining occupancy fraud as it relates to mortgage underwriting, while walking on the beach in Manhattan Beach CA. Occupancy fraud is when someone says they are going to live in the property as their primary residence when they really have no intention of living in the property as their primary residence. Instead, they really are going to rent it as a rental property. Why? Because you will get a lower interest rate buying a property as a primary residence as opposed to a rental property. So, there is a financial incentive.\n\nAn underwriter is skilled in looking for mortgage occupancy fraud. Brian explains the things an underwriter looks for:\n1. A buy down in value\n2. Geography\n3. Driver's license\n\nUnderwriters are looking at loans much more closely these days and occupancy fraud is one of the biggest things they look out for. You'd be surprised how much this happens. Is someone trying to beat the system to get a lower interest rate than they deserve when they have every intention of renting a property out?\n\nGet to know Brian Martucci, a mortgage lender serving all 50 states and Washington D.C. Visit Brian's blog today for valuable insights into the mortgage industry, home-buying advice, and mortgage loan information: http:\/\/www.GetLoans.com\/Blog\n\nCheck out my client reviews and happy mortgage loan customers: \nZillow (162 Reviews):  http:\/\/bit.ly\/BrianMartucciZillowReviews\nGoogle (75 Reviews):  http:\/\/bit.ly\/BrianMartucciGoogleReviews\nYelp (82 Reviews):  http:\/\/bit.ly\/BrianMartucciYelpReviews\nFacebook (28 Reviews):  http:\/\/bit.ly\/BrianMartucciFacebookReviews\nLinkedIn (12 Reviews):  http:\/\/bit.ly\/BrianMartucciLinkedInReviews\n\nBrian Martucci is a mortgage lender with a proven track record of helping his clients in mortgage success. Visit Brian's website to get started with a home loan today! http:\/\/www.GetLoans.com","thumbnailUrl":["https:\/\/i.ytimg.com\/vi\/gejiXX3iZgA\/default.jpg","https:\/\/i.ytimg.com\/vi\/gejiXX3iZgA\/mqdefault.jpg","https:\/\/i.ytimg.com\/vi\/gejiXX3iZgA\/hqdefault.jpg","https:\/\/i.ytimg.com\/vi\/gejiXX3iZgA\/sddefault.jpg","https:\/\/i.ytimg.com\/vi\/gejiXX3iZgA\/maxresdefault.jpg"],"uploadDate":"2016-02-05T18:29:50+00:00","duration":"PT4M11S","embedUrl":"https:\/\/www.youtube.com\/embed\/gejiXX3iZgA","publisher":{"@type":"Organization","@id":"https:\/\/www.youtube.com\/channel\/UCtzgXcFj13brckkNS9QLR2w#Organization","url":"https:\/\/www.youtube.com\/channel\/UCtzgXcFj13brckkNS9QLR2w","name":"Brian Martucci, Mortgage Lender","description":"Brian Martucci Mortgage Lending is a direct lender for home buyers seeking a mortgage, or homeowners looking to refinance a home. Brian Martucci Mortgage Lending serves all 50 states and is in the top 1\/10th of 1% off all loan officers nationwide. \n\nIn the mortgage industry since 1986, Brian Martucci offers a loan experience that's hard to beat!\n\n-We choose between multiple lending sources, which provides you competitive pricing.\n-As a direct lender, everything is done completely in-house, which is critical to a smooth transaction.\n-Float Downs are offered to secure better terms if pricing drops after the loan process has started.\n-We provide an online Loan Status Tool to keep you informed during every step of the loan process.\n-Only local appraisers are used.\n\nLearn more about how I can help you with your home loan by visiting https:\/\/GetLoans.com today! Or, contact me via email at: Brian@GetLoans.com.","logo":{"url":"https:\/\/yt3.ggpht.com\/ytc\/AIdro_n9Lk7Lj7LtzCXKu_peXAYB-hP5gJ-AkBasJ0Uorx_jww=s800-c-k-c0x00ffffff-no-rj","width":800,"height":800,"@type":"ImageObject","@id":"https:\/\/www.youtube.com\/watch?v=gejiXX3iZgA#VideoObject_publisher_logo_ImageObject"}},"potentialAction":{"@type":"SeekToAction","@id":"https:\/\/www.youtube.com\/watch?v=gejiXX3iZgA#VideoObject_potentialAction","target":"https:\/\/www.youtube.com\/watch?v=gejiXX3iZgA&t={seek_to_second_number}","startOffset-input":"required name=seek_to_second_number"},"interactionStatistic":[[{"@type":"InteractionCounter","@id":"https:\/\/www.youtube.com\/watch?v=gejiXX3iZgA#VideoObject_interactionStatistic_WatchAction","interactionType":{"@type":"WatchAction"},"userInteractionCount":4081}],{"@type":"InteractionCounter","@id":"https:\/\/www.youtube.com\/watch?v=gejiXX3iZgA#VideoObject_interactionStatistic_LikeAction","interactionType":{"@type":"LikeAction"},"userInteractionCount":46}]},"about":["Video"],"wordCount":692,"keywords":["investor loans","mortgage application","occupancy fraud","underwriting","underwriting guidelines"],"articleBody":"Hi, it is Brian Martucci doing a video blog from the beach. I am in Manhattan Beach, California. Take a look. Beautiful, is it not? So, today I want to do a video blog about occupancy fraud. By occupancy fraud I mean somebody that says that they’re going to live in a property as their primary residence when they really have no intention to live in the property as their primary residence. They really are going to rent it as a rental property.Watch the video hereWhy do people do this and say that they’re going to live there when they are not? They do it because they will get a lower interest rate buying something as a primary residence as opposed to a rental property. So there’s a financial incentive. But the problem is you really can\u2019t get one over on the underwriter in relation to anything these days.For occupancy fraud there’s three reasons why you won’t get one by the underwriter. Number one is called a buy down in value. When an underwriter sees someone who currently lives in, for example, a $650,000 house. And they are attempting to say that they’re going to live in a $400,000 condo or even a $400,000 house. The underwriter is not going to buy that they’re going to buy down in value. Why would somebody go from a four bedroom home for $700,000 to a two bedroom single family worth $400,000 in a neighborhood that\u2019s not as nice? It doesn\u2019t happen. It doesn\u2019t make sense and the underwriter would not buy it.The second reason is related to geography. If an underwriter sees somebody who works in a certain area and has a current primary residence in a certain area. And then says that they’re going to buy a new primary residence property that maybe is an hour and a half away, it just doesn\u2019t make sense geographically. Even if the property value is on par and the underwriter doesn\u2019t see a buy down in value, they’re not going to buy it for geographic reasons.The third reason is related to driver\u2019s license. Now underwriters require a copy of your driver\u2019s license. And if they don\u2019t think it makes sense based on the driver\u2019s license. This kind of ties into the geography. If you see a driver\u2019s license for somebody and they live in Frederick, Maryland for example. Which is at least an hour north of Washington DC. Then they\u2019re attempting to say that they\u2019re going to buy a property in downtown Washington DC. Or maybe in Alexandria, Virginia south of Washington DC. It might be an hour and a half from their current primary residence. Let\u2019s say they work in Frederick. How can you work in Frederick and currently live in Frederick and then say you’re going to buy in Alexandria, Virginia. Which could be an hour and a half away easily with traffic. And show a driver\u2019s license with Frederick, Maryland. The underwriter might ask you to change your driver\u2019s license. Are you willing to go to that extreme and change your driver\u2019s license to Alexandria, Virginia to the new address? To show the underwriter that you\u2019ve really relocated and supposedly moved into this place so far away from your job?Underwriters obviously are looking at loans much harder these days. And occupancy fraud is one of the biggest things they look out for. And it may sound like an odd topic to blog about, certainly a video blog, but you\u2019d be surprised how much it happens. Which is why I\u2019m talking about it because it\u2019s one of the top things that underwriters look for. Is somebody trying to beat the system and get a lower interest rate than they deserve when they really have every intention of renting a property out.So that was the blog for today. Occupancy fraud. And I\u2019ll be coming back to you soon with an exciting video blog from another exciting location soon. Thanks for watching."}