I am processing a refinance on an investment property. The second ratio is too high. What am I doing wrong?
- Open the refinance investment loan file you are having a problem with.
- Go to the Schedule of Real Estate Owned on page 3 of the loan application.
- Click the Cash Flow Subject Property button, and make sure it is correctly filled out with the subject property information.
- Click the Details button on the subject property.
- Look for a line of text above the property address that says: This is the subject property. If you do not see that line, you may have inadvertently entered the subject property address into the loan file twice with different spellings. Click the down arrow in the property address field and look for two spellings of the subject property.
- If you see two or more spellings in the dropdown, click on one of the spellings to select it.
- Check for the This is the subject property line at the top of the details box. If it does not appear, repeat step 6 with another selection until the This is the subject property line appears.
- Click close on the Details screen to save changes and exit the screen.
- Recheck your ratios.
If all else fails:
An investment refinance loan should have a blank or zero in the net rental income field. If it does not, you can click in the Net Rental Income field at the bottom on the left of the Details screen, type a zero, and click yes to the This is a calculated field, do you want to overwrite.. message. Click OK to save changes.
