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4 years ago
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I purchased my home a few years ago at a rather high interest rate. I want to refinance now, but I no longer live in it making it an investment property. They are telling me I have to owe 70% or less to do this, is this accurate?

Since it hasn't been long since the initial mortgage, I havn't been able to pay off a lot of the principle, and am being told investment properties require you owe 70% or less on the principle than the house is appraising for(which I am currently not meeting). It's almost assured to be rented out for my CURRENT mortgage rate (or just below).

Is this 70% number some fixed requirement? IS it dependant on the mortgage lender? Are there ways around this as my mortgage is almost assured to be paid by renters alone?
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4 years ago
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I recently ran into this issue as well. To my understanding, due to Fannie Mae regulations, it has to be below 75%. I believe there are some other factors that can slightly adjust that 75%, but it's a hard requirement and there didn't seem to be a way around it. I was told literally: "If you have millions in your bank account, and have a steady income of hundreds of thousands a year, you still can not refinance a $50k mortgage principle if that's not 75% or below appraised value." Obviously those numbers are made up but you get the idea. They just wont let you around that number regardless of credit/income/etc. The only thing to do is put your own money down to lower your current principle amount, and/or hope and pray it appraises for as much as possible.

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