Lender about to decline my loan

[Frank Agyeman-Duah]

I recently refinanced my primary  home and switched it into a conventional loan after living there for a year.  I had also refinanced a prior house that I purchased in 2016 into a conventional loan.   I currently have a property under contract in Georgia. We're schedule to close on this loan on 3/10/2022. The lender just called to tell me that they are suspending my application because they realized I refinanced my property as an owner occupied and not an investment loan.  Lender wants me to convert the loan into an investment loan but I'm unable to raise the 25% down payment. I may lose my earnest money if this deal falls through. I need help asap to find another lender who can close this for me. Your suggestions are welcome.

[Joe Splitrock]

Quote from @Frank Agyeman-Duah:

@Matt Devincenzo

The new loan will be owner occupied. The refinance on my current home on date on 1/31/2022.

 That is the problem, you can't owner occupy two properties. Look at the loan documents you signed during your 1/31/2022 refinance and it likely has time period requirement for owner occupancy. Taking out a second owner occupied mortgage in March, means you cannot owner occupy both properties. One of them needs to be an investment loan. The low down payment options are ONLY for owner occupied, not for investors. These programs are designed to encourage home ownership, not for investors to profit from. You can move out of owner occupied and keep your owner occupied loan only after occupancy time frames have passed. That could be 6 or 12 months, but either way it is more than 2 months.