I had a very similar experience recently with a client and a unscrupulous lender. Find another answer to your refi if you're going to rent it out, and use FHA for an owner occupied purchase. FHA on a refi you don't plan to occupy will end with plenty of stress and misery. Find a high quality lender to guide you through. My client got though with his old condo rented and his new purchase intact. I am sure there's another option that doesn't require fraud.