We just received word from one of the PMI companies that insures the Mortgage Insurance Premiums for ALL Banks and Mortgage Companies Nationwide. Companies such as MGIC, RMIC, Radian, just to name a few, underwrite the PMI files.
What we have heard is that as of June 9th, The Following Counties will be declared Declining Markets: Greene, Christian, Dallas, Webster and Polk. Those realtors who do business outside of these counties will not be affected, but for those who are , here is what will transpire.
Please keep in mind, not all the PMI companies will put this into affect yet. It will probably be a trickling affect, but eventually all the PMI companies will be on Board on this.
For the FHA , VA and USDA loans for now are not affected by this which is good news. This only pertains to Loans that go Conventional .
Again, I will be sending out more information as it comes in to keep all of you updated. But here are the Parameters :
- For Purchase and Rate / Term Refinance Owner Occupied : The Credit Score must be 680 and the LTV is 95% ( If the Score is lower then the LTV Drops to 90% )
- For Purchase and Rand Term on Second Homes: The Credit Score must be 700 and the LTV is 90% and the Debt to Income Ratio must not exceed 41%. ( 5% Reduction if Score is below 700,but DTI must remain at 41% )
- For Purchase and Rate and Term on Investment Homes: The Credit Score must be 660 and the LTV is 85% and the debt Ratio must not exceed 33%
Again, this applies to Conventional Loans and PLEASE keep in Mind, NOT all MI companies have put this in place. They are still going by the Stable Market. It is only one MI Company for now that will be Putting this in place come June 9th.
So if you have a lender and Customer that are falling in these parameters, Please make sure that your lender does the Homework now so you and the buyer are not caught in a Bad Situation.
What I am doing for all customers is using the FHA and USDA loan to offset this from having to go conventional if the Down Payment is an issue.
I hope I have outlined the information so it makes sense. Please feel free to email me or call with any questions. I will keep you updated, but I wanted give everyone a Heads UP so no one is blind sided.
I sure appreciate your Business. Have a great day !
Thank you again !
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