Borrower is purchasing a condo that is going to be her primary residence. It was disclosed as primary on the application and underwritten as such. Now, the day we have to get the CD out, we are informed that the borrower will be renting the condo out for 9 months and after that, will be using as her primary. (yeah)

SO, I am thinking that this has to be reunderwritten as an investment property. Do you all feel that is accurate? Not only that, but should she reapply?

Whether you have to underwrite the loan again depends on your lending policy and any investor requirements.

I agree with Dan. Just for example, the standard secondary market security instrument (FNMA/FHLMC document) Uniform Covenant number 6 is noted below. It would to wise to see what your security instrument says, in addition to checking on your lending policy and any investor requirements.

6. Occupancy. Borrower shall occupy, establish, and use the Property as Borrower’s principal residence within 60 days after the execution of this Security Instrument and shall continue to occupy the Property as Borrower’s principal residence for at least one year after the date of occupancy, unless Lender otherwise agrees in writing, which consent shall not be unreasonably withheld, or unless extenuating circumstances exist which are beyond Borrower’s control.