pmi mortgage: Fannie Mae Increases Down Payments on MyCommunity® and Standard Loans
- 08/21/13 08:12 AM
In another backward-thinking move, Fannie Mae has very subtly announced that they will be increasing their down payment requirements by decreasing their maximum Loan to Value Ratios for MyCommunity® mortgages and for standard mortgages on 1-unit primary residences effective on or after the weekend of November 16, 2013. The previous allowed down payments were at 3% based on a Loan to Value Ratio (LTV) of 97%. The difference between 95% LTV and 97% LTV financing may sound slight but on a macroeconomic level, it’s huge. It will postpone purchases for multitudes of buyers; particularly first time homebuyers who might find themselves … (21 comments)
pmi mortgage: Will the Tax Deduction on Mortgage Insurance Become Permenent
- 04/22/13 11:06 AM
The tax deduction on private mortgage insurance has been bounced around like hot potato ever since 2007. The problem with the lack of predictability in tax deductibility of mortgage insurance is that when people are making a decision on which of the four types of private mortgage insurance they want on their loan, it’s typically with long term considerations in mind. This lack of certainty has turned some mortgage insurance decisions into guesswork. To date, the tax code has provided no long term predictability to aid the consumer in this important and difficult decision. With the help of Senators Debbie Stabenow … (5 comments)
pmi mortgage: Fannie Mae Guideline Changes - Gifts, 97% Financing and Mortgage Insurance
- 11/27/10 03:19 PM
There has been some recent excitement about Fannie Mae (FNMA) changing her guidelines on down payments and allowing gift funds as an acceptable form of down payment in lieu of a borrower’s own funds. Before we all get excited about FNMA getting a little FHA in her with respect to gift funds, we need to realize that the guidelines for mortgage insurance and FNMA are not aligned. So long as they aren’t, this change will only have minimal effect. This chart outlines the new accepted forms of down payment from FNMA’s perspective:
Here's the Fannie definition of acceptable donors for … (3 comments)
pmi mortgage: Monthly Private Mortgage Insurance – It Doesn’t Make Any Sense
- 05/29/10 05:59 PM
It is inevitable that FHA will play less and less of a role in the lending market. As this unfolds, it's critical for loan officers, Realtors and borrowers alike to understand the many options in the improving private mortgage insurance market. In the distant days when home values were increasing, it made perfect sense for borrowers to opt for monthly mortgage insurance and wait till their home had appreciated to the point where they had a twenty percent equity position. They'd soon call their lender to get an appraisal ordered and drop their monthly mortgage insurance. Those days are gone. In … (20 comments)
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In another backward-thinking move, Fannie Mae has very subtly announced that they will be increasing their down payment requirements by decreasing their maximum Loan to Value Ratios for MyCommunity® mortgages and for standard mortgages on 1-unit primary residences effective on or after the weekend of November 16, 2013. The previous allowed down payments were at 3% based on a Loan to Value Ratio (LTV) of 97%.
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