Investment Property Program
Eligible properties Maximum four units New construction or existing properties Property must meet the following criteria: Municipal zoning Fully self-contained units Remaining property (economic) life must equal or exceed the amortization of the loan.
Ineligible Property Types Time-share Interests Vacation Homes Commercial zoning Rooming Houses Quarter Share / Shared Ownership Rental Pools
Borrower Qualification Maximum 40% TDS TDS = PIT+ Other Monthly Obligations - (Rental Income x 80%)
Qualifying Income Of Applicants PIT: Also include 50% of condo fees Rental Income The lesser of actual rent or fair market rent as determined by an approved appraiser Income from a non-conforming basement suite will be considered on an exception basis Down payment from borrower's own resources Personal guarantees are required when the borrower is not an individual (e.g. corporate entity). The personal guarantee can not be released without prior consent from Genworth Recommended Credit Profile Borrowers should have a strong history of managing their credit Two (2) trade lines with at least two (2) years history No prior bankruptcy Purchase: credit scores 660 or greater Refinance: credit scores 680 or greater Genworth will consider applications with lower scores based on the overall merit of the application and where other risk mitigating factors exist.
Assumptions/Assignments Mortgages issued under this product are assumable provided the new covenant meets all product qualifications and guidelines Insurance coverage will continue in the event of a sale of the mortgage to an investor provided that servicing continues with a Genworth approved lender in compliance with Master Policy terms.
Documentation Requirements (To be kept on file by the lender) Offer to purchase Income confirmation T1-Generals (As required) Down payment confirmation
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