Did you know that high LTV loans are back? Did you know that you can finance a purchase up to 97% and a Jumbo up to 90%? Unfortunately, many Realtors don't and what's scarier, many loan officers don't either and are walking away from perfectly good deals.
Many PMI companies have loosened up and are allowing purchases with 720 score up to 97% LTV and 95% LTV with a 680 score and that includes condos.
Ok, not so big news since FHA has always been doing purchases up to 96.5% LTV, but FHA's monthly PMI is going up by .25% on April 18th, which on a 96.5% LTV translates to 1.15% monthly payment. On a $200,000 loan, that translates to an additional $41.67 per month.
Conforming loans will price out at .98% for 97% LTV and .78% - .94% at 95% LTV (depending on credit score). Add to that the 1% up front MIP required by FHA, conforming is starting to look better and better.
Now don't get me wrong, FHA has its place and I do them as well, but it seems that the tide may be shifting back to conforming loans.
Some of the additional advantages are that some lenders will allow a one time, up front payment of the PMI of no more than 3% of the loan amount. So you can structure the deal, where the seller pays the PMI as a seller's concession and the buyer never has a monthly PMI payment.
As for the buyer, FHA requires the monthly PMI payment for a minimum of 5 yearsregardless of property value or principal pay downs, where PMI companies will allow the buyer to remove the monthly PMI if the value of the property has increased to below 80%LTV or, if the buyer has payed down the principle to below 78% LTV - regardless of time.
All in all, it translates to more options to put more people into homes. 
Ray Waisler
Home Savings of America
lending nationwide
877-695-6284
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