I say yes, lender says no.. Some more insight would be nice!!

Customer purchased property 2 yrs ago with buisness partner to be used as rental property.
Buisness partner dies.
Customer moves into property as his primary 1yr ago.
Now we are a new FI refinancing the note to pay off the first note in which the buisness partner was a part of.

I say yes since he has been living there for some time now and had ownership intrest from the 1st loan.

Lender says no since we are refinancing a commercial note.

Thanks for the help..

Does business still exist and does it receive rental payments?

Oh...and is loan in a business entity name, or the personal names?

Based on the infomation given this would no longer be rental property, therefore I see no wiggle room to consider this a busines purpose loan since the home is now the borrower's primary residence. This is a business purpose debt later being refinanced for a consumer purpose.

Who currently owns the property: 2 individuals (one deceased), a partnership, LLC, corporattion?

2 individuals (one deceased),

Then I agree with what Dan wrote. Business debt turned personal purpose.