Financing owner occupied non-rental

[barb]

Hello!!!

My situation is that I have recently refinanced 2 rental properties, high-ratio, beacon score good, ratio`s great. I am trying to refinance (equity take out) my owner-occupied, non-rental property. I am having a heck of a time!!! I originally applied as a conventional application, but was declined. I then applied as a high-ratio, CMHC insured application and have again been denied. I have been using FirstLine as they are the only lender that I am aware of who will refinance @ 95% ltv. I am being told by the lender that CMHC is not just looking @ ratio`s in order to qualify, but I haven`t been told what they are looking for. Has anyone run into a situation similar to this and/or have any suggestions? BTW...I am a mortgage agent.
Thanks

Barb

 

[kboughen]

QUOTE (barb @ Sep 19 2009, 06:33 PM) I am being told by the lender that CMHC is not just looking @ ratio`s in order to qualify, but I haven`t been told what they are looking for.
Most Lenders are now only refinancing to 90% (95% reserved for purchases only). If you hold (3) or more rental properties, Firstline will be looking at the following to qualify your owner occupied conventional refinance;


1) Does your (2) year verified income average cover your GDS/TDS ratios on your owner occupied refinance including all personal liabilities

2) Do each of your rental properties have a minimum debt coverage ratio of 1.1 using the CIBC DCR tool

3) Do you have $100,000 in liquid assets (Cash, GIC, RSP etc), real estate equity does not count


If you are requesting an owner occupied CMHC refinance, in addition to the above, they will also check the ratio`s resulting from the CMHC Rental Property Ratio Worksheet.


CMHC (and Lenders) have also been know to turn down deals that fit all their guidelines, if there is something they just don`t like about the deal. Could be location, overall leverage, too many vacancies, too many purchases/refinances in a short period of time, etc.

 

[barb]

Thanks for responding

 

[Andrew Benedict]

Hey Kevin,

Where could I get a copy of the CMHC Rental Property Ratio Worksheet.

Thanks,
Andrew

 

[barb]

Kevin fyi...FirstLine refinances up to 95%. The guidlines you posted were for Firstlines CONVENTIONAL, 3 or more rental properties. When the properties are high-ratio, CMHC insured, the borrower does not require $100,000 in non-real estate assests. Barb

 

[kboughen]

QUOTE (AndrewB12 @ Sep 21 2009, 07:35 PM) Hey Kevin,

Where could I get a copy of the CMHC Rental Property Ratio Worksheet.

Thanks,
Andrew
Hi Andrew,


I have posted the file here;


http://www.investormortgages.zoomshare.com...talAnalysis.xls