Technically, my guess is they lied so as not to pay investment property interest rates...
Those are the "liar's loans" that I
really hate. Since we do full verification on all loans, it doesn't matter what the applicant says he or she earns; it only matters what we verify he or she earns. But when it comes to statements of intent to occupy, it's very difficult to prove the intent is not there.
Basically, in your gut you know they're lying, but you can't prove it. And you know they're lying just to get the owner-occupied rate.