Fraud for Housing schemes usually involve all EXCEPT which of the following?

Fraud for Housing schemes primarily focus on misrepresentations and falsifications that enable borrowers to qualify for loans they would otherwise not be able to obtain. This type of fraud generally involves actions such as falsifying income tax returns and altering verifications of income, as these tactics are aimed at misrepresenting an individual's financial situation to secure a mortgage.

In this context, the option regarding inflated property appraisals is distinct because it is typically associated with different types of mortgage fraud, specifically fraud for profit rather than fraud for housing. Fraud for profit often occurs when appraisers collude with borrowers or lenders to inflate property values, enabling higher loan amounts than legitimate valuations would allow. This manipulation can lead to significant financial repercussions for lenders and might involve collusion among multiple parties.

The mention of gift funds and/or unsecured loans for down payments is also relevant, as it can be a legitimate practice to assist borrowers in securing financing; however, its misrepresentation by inflating down payment sources can fall under housing-related schemes but is typically not a direct means of qualifying for a loan through fraudulent practices.

Thus, option C stands out because it does not relate directly to the tactics used in fraud for housing schemes, focusing instead on an aspect that would fall under different fraud types