More changes on the horizon for the biggest Private Mortgage Insurance company, MGIC. MGIC is almost always first of the MI companies to institute change and the others follow shortly thereafter. New changes coming on the heals of big changes in March. These new changes will be effective on June 1, 2008. Here is a snapshot of some of the changes:
* No mortgage insurance on investment properties... which means all investment property purchases will require a 20% down payment. Today, you can purchase 1 and 2 unit investment properties with only 10% down.
* Cash-out refinancing will not be insurable
* 3-4 family owner-occupied will not be insurable.
There are alternatives to these types of loans that will no longer be available, if you are looking for answers, call us at 431-9299.
Certified Mortgage Planner, Ken Pederson, keeps you up to date with industry news.
Mortgages Fair, Fast and East... The Fairway!
RE/MAX Results - Elk River, MN
Minnesota/Wisconsin Real Estate Expert
Wow. 20% down for investment properties. Probably a good idea...but that eliminates some buyers.
May 08, 2008 01:58 PM
Tri-Emerald Financial Group - Mission Viejo, CA
Bethesda, MD
Ken,
The mortgage market is getting squeezed a little more, as if it wasn't there already. Yet, once this thing turns around, the restrictions will be gradually eased.
May 10, 2008 05:09 PM
Rainmaker
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Ken Pederson
Certified Mortgage Planner
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