We turned our second home into a rental property, and now want to refinance. Do we get a conventional refinance or need a non-o
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?
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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Best,
Bill