In this case, the construction is frame, so on a 190K policy its ACV is about 85K.

I do this frequently: my client has policies with the insurance company, but I have a book of business with them.

- It's funny, now that I have the money to pay cash I have made contacts and met other investors, turns out there's so much cash laying around looking for deals to invest in, I no longer have to use all my cash to buy#6 paid 85K used hard money for 3/1 SFR, spent ZERO on rehab, sold for $127K (buyer paid $110,000 cash, and agreed to a $17,000 1 year balloon note at 9%, which will pay off next month, created $125/month income for 12 months, and a nice pop is coming!)

Being foreigners we started with a zero credit score although we have now built this up to a stage where we have a credit card and no longer on prepaid gas.

RBC made a policy choice last year to fill a gap most of the Big-5 Canadian banks have: 5 & 6 unit properties are "technically" commercial, but the commercial lending department won't touch anything <500K {possibly higher in TO and Vancouver} and really do not like to bother with deals <1-million.

I've never owned a zero bedroom house or a 6+ bedroom house.

You are getting crushed now by upfront MIP and ongoing annual MIP.FHA came on strong when conventional loans took an absolute beating with the 80/20 loans ZERO DOWN.

If you are a real estate agent, etc. there are group policies through the National Association of Realtors, etc.

I would also strongly recommend that you have a WRITTEN screening policy.

Your loan is securedby a Mortgage on the property, a personally signed promissorynote, and a homeowner’s insurance policy