Genworth, the mortgage insurance company, recently sent out this update. Much of the information is valuable information for consumers and real estate professionals. The informed Realtor will be advised to know this information and/or to have a great mortgage associate at your disposal. Here is Genworths update:
Commonly Asked Underwriting Questions Answered:
Rent to Own -Genworth asks that the "rent to own" agreement was signed prior or same time as lease.We only apply the dollar amount that exceeds the fair market rent towards the down payment
Agricultural property - Zoningmust allow for residential development; property must meet guidelines as per Acreage Property requirements; confirm applicant(s) income is not derived in any way from the land; the land will not be used by the applicant(s) or any other entity, for farming; maximum acreage to be included in property value has been increased from 10 to15 acres
Square Footage Minimum - Genworth does NOT have square footageminimum but property size has to be the "norm" for the area. For example; there is a lot of very small condos in downtown Toronto so that is normal for area
NOA Verification - If you go to CRA website www.cra.gc.ca. and request Quick Access, follow the prompts and have available SIN, DOB, TAX YEAR and AMOUNT ON on LINE 150, when you hit continue and if Line 150 is correct, you will get the Name of filer, and statement "your 2007 was assessed on (date on return) " and then you can also confirm the RRSP limit by clicking on that box. If you do not get this information, the NOA presented to you has discrepancies. This is currently good for 2006 and 2007.