80% with no backend insurance possible?

[bizaro86]

Hello,

I recently had a situation come up with regards to financing, and I thought I`d inquire here.

We have an accepted offer on an apartment style condo, for which we plan to put 20% down. Our mortgage broker secured a mortgage approval for us from First National, but CMHC denied their application for back end insurance due to the "state of the building." This was a failed condo conversion here in Calgary, so although it does now have a condo board, there is no reserve fund in place, and a special assessment is possible for some deferred maintenance. I think its a good investment irrespective of those issues.

What options are there for non-CMHC back ended 80% down rentals, in people`s experience? My broker is trying a Genworth insured lender, but I`m wondering if they`ll have the same issue. Does anyone (Scotia, maybe?) do 80% rentals without insurance?

Thanks for any insight,

Michael

 

[RobMacdonald]

Your best option is probably Scotia, but if the appraisal indicates the deferred maintenance, the LTV may be cut back. Scotia is probably the best option through a mortgage broker. TD will require probably 25% down. Firstline can finance at 80% but the property must meet the 1.1 dcr rule at a 25 year amortization.

 

[PeterKinchMortgageTeam]

Hey Michael, Dominion Lending Mortgages uses Genworth on the backend, but whether they would lend on it or not would come down to what the `Special Assessment` is. You can avoid the insured-lenders but the chartered banks who do not rely on back-end insurance will likely have the same issue.
My PK -Approved broker in Calgary is Shawn Selanders - you could try contacting him.

Peter
QUOTE (bizaro86 @ Jul 28 2010, 11:16 AM) Hello,

I recently had a situation come up with regards to financing, and I thought I`d inquire here.

We have an accepted offer on an apartment style condo, for which we plan to put 20% down. Our mortgage broker secured a mortgage approval for us from First National, but CMHC denied their application for back end insurance due to the "state of the building." This was a failed condo conversion here in Calgary, so although it does now have a condo board, there is no reserve fund in place, and a special assessment is possible for some deferred maintenance. I think its a good investment irrespective of those issues.

What options are there for non-CMHC back ended 80% down rentals, in people`s experience? My broker is trying a Genworth insured lender, but I`m wondering if they`ll have the same issue. Does anyone (Scotia, maybe?) do 80% rentals without insurance?

Thanks for any insight,

Michael