What are the red flags in a Status Certificate for a lender?
Lenders look for: (1) Inadequate Reserve Fund (lower than the study recommends), (2) Current or pending litigation against the corporation, (3) High percentage of rented units vs owner-occupied (some lenders cap at 30% rental), (4) Major 'work orders' from the city that are unaddressed, (5) Deficit in the annual operating budget.
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Related Questions
How does mortgage insurance enable lower down payments?
Mortgage insurance lowers the risk for lenders, allowing them to offer mortgages to borrowers with down payments between 5% and 20%.
How will lenders evaluate my debt service ratios, and what key factors are considered?
Lenders assess your ability to repay the mortgage by calculating your Gross Debt Service (GDS) and Total Debt Service (TDS) ratios.
What property considerations impact my mortgage application?
Lenders carefully assess the property's value and characteristics, directly influencing the loan amount you can secure.
How does the 'straight switch' exemption benefit you at renewal?
The 'straight switch' exemption lets uninsured mortgage borrowers move their mortgage to a new federally regulated lender (FRFI) at renewal without needing to pass the Minimum Qualifying Rate (MQR) .