Non-Owner Occupied Refinance - The Bills.com Blog

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Non-Owner Occupied Refinance

Friday, Nov 20, 2009

Question: A residential home is purchased as a second home then is subsequently converted to a rental property. If that property were to be refinanced now would this require a investment property loan (I think that's what you call it for a rental home) or could it still be refinanced as a second home since that is the existing mortgage?

Answer: If you show rental income or expenses on a Schedule E for that property, then the lender will consider the property a non-owner occupied property, and will require you to get a non-owner occupied loan, also known as an investment loan.

The
term "non-owner occupied" is applied to a single-family home that is rented to tenants. The description is important from a mortgage standpoint, because lenders perceive a non-owner occupied property mortgage as being
more risky than an owner-occupied property mortgage.

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I hope this information helps you Find. Learn & Save.

Best,
Bill
www.bills.com/blog/

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