The Washington Post had an article today that outlined some major changes to the qualification rules for mortgage insurance that are due to take effect on March 3rd, 2008.
Summary of Changes:
Home buyers who seek mortgages with less than 5 percent down must have minimum FICO credit scores of 680, up from the previous 620. Cash-out refinancings on all non-owner-occupied rental or investment properties no longer will be eligible for insurance, no matter how high the borrower's credit scores.Borrowers who seek to use reduced documentation plans must now make minimum down payments of 10 percent, have FICO scores of 660 or higher and be able to demonstrate that at least 50 percent of their annual income is from self-employment. The income restriction is intended to discourage "stated income" applications from people who could readily furnish pay stubs or W-2 tax forms but choose not to do so. All buyers of condominiums in declining markets will need to come up with 10 percent down payments. Buyers of single-family homes in those areas with less than 10 percent down payments will need FICOs of 680 or higher. This is going to really cause home prices to continue to tighten up as fewer people can get financing. The major bright spot is that the Federal Housing Administration's program has no connection with private mortgage insurance.
For information on purchasing your next home in Upland or anywhere in the Inland Empire call Empire Realty at 909-579-6611 or visit us on the web at Empire Realty.
Empire Realty is your one stop shop for information and Full Service at a Discount.
Comments(0)