mortgage insurance changes and the effect on condo sales

mortgage insurance changes and the  effect on condo sales

Today we received word that all of the major carriers will discontinue mortgage insurance coverage on condos above 90% ltv in so called 'declining markets'. As you might expect, they consider most of the Washington Metropolitan Area and the entire country a 'declining market'. These changes will be effective April 30th for single file and lender paid mortgage insurance. They will be effective May 31st for borrower paid mortgage insurance.

More gloomy market news.... not necessarily. Two things to take out of it if you sell in this market:

First, we need to create a sense of urgency for any buyers who fit this category. We simply don't know if they will qualify for a loan very shortly. Interest rates are low, let's go now.

Second, please note that I still have a loan program and underwriting software that will approve 95% financing on condos exclusive of what the mortgage insurance companies will cover.

It is more important than ever that you have a loan officer who is on top of how market changes will effect your buyer's specific situation. Please let me know if you need something. Thank you so much for your referrals. 

p.s. jumbo 5 year arm with interest only option is at 6.25%

  Joseph Nalls   Residential purchase loans and refinancing in all 50 states   B.F. SAUL MORTGAGE A CHEVY CHASE BANK COMPANY 7501 Wisconsin Av 5th Floor Bethesda, MD 20814 phone: 240 497 8060 fax: 240 497 8099 mobile: 301 529 8611 email: jpnalls@bfsaulmortgage.net apply online at www.bfsaulmortgage.com/jnalls