Experienced investor unable to qualify for mortgage

[Jonathan Blum]

I am an experienced investor with more than a dozen properties, a few paid off, all cash flowing, 100% occupancy, not highly leveraged (less than 50%).  I have 8 mortgages (5 from banks, 3 contracts).  After investing in real estate and working a full time job for more than a decade, last year I decided to leave my full time work and work part time, largely living off the rental income that comes with managing my properties.  My credit score is in the high 700s and I have never missed a payment, defaulted on a loan, or any other credit ding. 

A few weeks ago I approached my credit union about getting a loan for a new home.  I asked for a pre-approval and was denied.  They didn't feel my passive income from my properties was sufficient to meet underwriting guidelines without a full time job on the side.  It is hard to believe.  If I was a new investor with no history, no experience, no track record, I get it.  But I have a long history and have had stable income from my properties for many years.

Have other experienced investors had this problem?  Do I need to pay cash or get contracts for everything moving forward?

Thanks for your advice.