A first-time homebuyer slightly overstates his monthly income on a loan application because he is afraid he will not qualify for the mortgage. This scenario BEST describes which type of mortgage fraud?

Correct answer: Fraud for housing

Fraud for housing occurs when a borrower misrepresents information on a loan application primarily to qualify for a home they could not otherwise obtain. The motive is personal housing, not financial gain. Fraud for profit, by contrast, typically involves industry insiders who manipulate transactions to extract money from lenders or investors. Appraisal fraud involves manipulating property values, and equity stripping is a predatory scheme targeting existing homeowners.