How soon can I refinance owner occupy to investment?

[Byron Broughten]

I've been digging through old threads and haven't found a clear answer to this.

If I get a conventional loan for a primary residence duplex, lets say with 5% down, but then I quickly build equity up to 20%, can I--before a year is up--legally move out of the property and rent out the unit I was occupying if I refinance under the pretense that the property will be used as an investment property? And if so, how long must I wait to do that refinance?

[John Barrows]

Be advised Byron, most all appraisals will have a 6 month seasoning. If you do anything within 6 months the underwriter will see the old appraisal or be notified by the new appraiser that an appraisal was done less then 6 months ago. With that said, it will also depend on the bank with whom you are doing business. 

The only reason I am saying this is because I have been caught in this with a client who was trying to buy a place for $30K more then the previous buyer. Their bank refused to do the loan. Of course, I didn't get a commission either but did, learn an excellent lesson.