Underwriter denied loan 1 week before closing
So I was a week out before closing on 2 unit in South Portland and the underwriter denied my loan. First of all I feel like the bank I used should have never had me pay for an appraisal if the suspected my loan with be denied. The underwriter said that they don't believe I'm going to be moving into the new two unit.
Right now I have been living in a 2 unit for over three years that I bought Conventional. The new 2 unit is 1.5 miles down the road but has larger units along with a dining room, full back yard fenced in, deck and 3 bedroom unit. I'm 100 percent moving into this new two unit and showed the underwriter my lease agreements on my current house.
The new 2 unit i'm buying with 15% down Conventional. Is this normal to have the underwriter deny the loan 1 week before closing??
They said the only scenario is that I either buy it as investment property or refinance my current house as an investment property. So i'm headed in the route of refinancing my house now which was currently under a different bank mortgage at a much lower rate than i'm having to refinance too.
Any comments and suggestions??