Investment Mortgage Refinance to primary residence

[Kyle Hood]

Hi, and thanks for reading

My in-laws purchased an investment property last july, with the intention my wife and I would do all the rehab over this past winter, and when possible we would transfer into our name. With the house just about finished we are looking to refinance out $70,000 to cover our reno costs. House was purchased for $305,000, Current mortgage balance is $220,000. The house was recently appraised for $450,000.

My question is can we change the mortgage to a primary residence (3%) instead of an investment mortgage (4.5%)? The biggest issue is my wife and i don't have work history in US. We spent last two years working in Canada. My in-laws are willing to cosign loan but the bank said if we use their debt/service ratio then it can't be our primary res. and has to stay as investment mortgage.

I am having a hard time getting honest answers as the 3 banks i have visited have all said different things...

Thanks again for any suggestions,

Kyle