Owner Occupied Refinancing Scenario

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I own a residential 2 family home that is zoned for small business use( hair salon ). My question is if I refinace my current mortgage could I apply for an owner occupied mortage seeing that I own and work in the salon inside the building?


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Unless you also live in one of the residential units in the building, it will not be considered owner-occupied. In fact, some lenders will consider this situation to present a greater risk because the tenant is related to or is the same as their borrower. At the very least, some of the income you derive is from the tenant of the building. You will be fortunate if a lender will look at this as a residential loan and not as an investment loan. Should you default, it is likely that the tenant will also go out.

Your best bet is probably to visit the bank with whom you have a relationship and who holds the depository account for the salon. They may be able to look at the loan differently from others who have no relationship.

Just one opinion.

Answered almost 7 years ago
Anonymous

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