just closed on a house as primary but now found another house want to buy as investment and live in it

It is only fraud if you intentionally falsified information about your intentions. If you legitimately intended on living in the first house when you applied for the loan< then you are ok.

On the loan documents you just signed as your primary residence, in order to get the better owner occupied loan terms, you agreed to owner occupy the home for at least one year (read your documents). In the situation you describe, it is unlikely to actually cause any issues - but....

Yeah, that's a Fine line on Fraud. You could always sell it or refinance into an investment loan the property you are in now, but you will need 6 month's payments made on it. If this loan is an FHA you signed a 1 yr Occupancy agreement too. If it is more than 50 miles form your home now, or is in a resort area, you could purchase it as a 2nd home but the whole renting thing on the first is where the problem is.

It's not fraud unless it was premeditated.

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