changing terms after refinancing

[David Healey]

Is there any way to change the Occupancy clause after a refinance? We purchased a Triplex in Salt Lake City, UT in January of 2017 on an FHA loan, put some sweat equity in it over the course of a year and refinanced out of the FHA to a Conventional loan with with 25% down. We didn't have a great experience with the lender during the refi process. I then put an offer in on a property down town and my new lender asked me if our refinance required owner occupancy. I told her it didn't cause this was the whole point of our refinance in the first place which was to get out of PMI and so we would get to buy another property. So, she had me pull out my refi packet and sure enough it says we have to occupy for a year unless the lender put in writing that weren't required to. This fact was never explained to us, our lender never asked us if we intended to occupy. This is a big, 12 month problem for us. The loan is now sold to FNMA. Is there any way to get the occupancy changed without having to refinance again? Thanks in advance for your thoughts.

[Upen Patel]

Hi! @David Healey No way to change to loan terms once the loan is in place.

Even if you had told the lender to do it as in investment, they wouldn't have been able to since you lived there. It was your primary residence. So no fault of the old lender.

Your options are to wait the 12 months OR refi it again.