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Nothing will happen, but getting approved for the investment as primary may be an issue.
1- What is proof the former home is NOO now? is there a renter present with a contract and proof of payment received? How long has it been rental? Have you declared rental income on tax return?
2.- Is the investment a nicer home than your other home? It would NOT make sense to say you live in a smaller house, the original house not being a rental, and no proof you have been living there.
3- Where are the bills sent? Investment or your existing home???
The new house is too close to the existing primary unless you can meet those requirements.
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In the movies only bad guys sleep in king size beds.
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