Hello, I currently have an "owner occupied " type loan and I would like to finance, however I no longer occupy the property. I talked to my lender was told that if I wanted to refinance I would have to occupy the property. Is this true? Do you know of other lenders that would allow this?
If I can't refinance as owner occupied, is it possible to convert my loan to a conventional loan?
When I bought the property I only had to put 20% down, and conventional would of required 30%. If I converted my loan type, would I have to put the additional 10% down?
Thank you guys!
You only have to refinance as an owner occupied loan if you are owner occupying. Typical conventional loan terms for an investment property are a 75% LTV, 25% equity. Unless you have some credit or income/ expense issues (DTI), no reason you should need 30% equity. If your property has appreciated by 20% since you purchased you’d have 30% equity. Did you buy this recently, as with an owner occupied loan to are required to occupy it for a year.
Why do you want to refinance? No need to if you met your one year requirement.
@Anastastia Disbrow May be you don't have to bring down payment if its appraised already or its 1 unit, You will able to do rate and term up to 80% on SFH. Your interest rate will be higher as investment compare to woner occupied.
@Wayne Brooks I have had the property for over 1 year. The reason I want to refinance is because my lender has told me I'm eligible for a lower interest rate. But the issue is I no longer live at the property. So I'm trying to figure out how I can refinance if I dont live there.
You don’t Have to live there to refi....as a rental property.