Straw buying is a practice where an individual will step in for the purposes of financing a home. The ‘straw-buyer’ is a person who has the credit/income/asset position to help obtain favorable financing terms, where the actual owners/buyer do not have the necessary credit profile. This practice is not allowed by lenders. The mortgage application specifically asks if the person (straw) buying the home will occupy the home as a primary residence, if they answer ‘yes’ then they have committed fraud. The right way to do this is to have the person who qualifies buy the home as an investment property and rent it to the real buyers.