Changes to Mortgage Insurance Guidelines
Posted on | February 24, 2009 | No Comments
Here are some very important changes in the mortgage market that could affect a lot of people. This comes from Katie Mahoney, of Carolina One Mortgage, 843-345-7009. “Mortgage Insurance companies have tightened (again) their guidelines. My understanding is that the Mortgage Insurance must be ordered NO LATER THAN 3.9.09 to still be eligible for Mortgage Insurance. I am waiting on information regarding the time frame the loan must close on… sometimes these companies say that the MI must be ordered by a certain date and the loan must close by a certain date… I will forward that information as soon as I receive it.
“As a result of these changes, effective 3/9/09, no MI company will offer the following as an eligible feature, and therefore will be restricted to 80% LTV in all Fannie Mae and Freddie Mac Loans:”
- Second Homes
- FICO below 680 (credit score)
- Debt ratios above 41%
- Cash-out refinance
- Manufactured homes
These guideline changes will not effect FHA loans (FHA insures their own loans)…
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