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Vacation Homes With as little as 10% down: PMI Companies finally relax guidelines

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Mortgage and Lending with CMG Home Loans NMLS 248937

 Finally, some good news in the form of relaxed guidelines.

 This is some great news. PMI Companies have caused many of the guideline changes we have experienced over the past few years since they were not willing go offer PMI on anything that had risk at all.

Just a few weeks ago we got news that we can do 10% down second homes. Here are the requirements:

  • 720 Minimum credit score
  • $417,000 Max Mortgage

Even if you don't dabble much in the Vacation Home market, this is a great sign. This news came from one of the more conservative PMI Companies. The fact that they are willing to insure vacation homes shows that they have a renewed confidence in the Real Estate Market. This confidence must mean that they see a stable improving market or they would not add any risk to their portfolios

 

Have a great week!

Rob

Robert Rauf

Mortgage Banker

www.RobertRaufHomeLoans.com   or my blog: http://activerain.com/blogs/rrauf

(732)223-1630 x102

Since 1987 I have been helping my clients fulfill their dream of home ownership!

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Show All Comments
Gary Woltal
Keller Williams Realty - Flower Mound, TX
Assoc. Broker Realtor SFR Dallas Ft. Worth

Robert, this is good news of confidence in the second home market. Thanks for bringing this to all our attention.

Oct 15, 2009 06:12 AM
Robert Rauf
CMG Home Loans - Toms River, NJ

Thanks Gary!  Previously when you liked at the PMI grids you wondered if they were really in the PMI business it was so darn restrictive!

Oct 15, 2009 06:22 AM
Amy Jones
Amy Jones Photo - Mandeville, LA
(licensed in LA)

Thanks for sharing this encouraging news. ~ Amy Jones

Oct 15, 2009 08:08 AM
Jeff Belonger
Social Media - Infinity Home Mortgage Company, Inc - Cherry Hill, NJ
The FHA Expert - FHA Loans - FHA mortgages - USDA loans - VA Loans

Robert... this is great news...  question, which MI companies though?  And I wonder if it will be state specific. Example, I have a gentleman wanting to buy a 2nd home in Florida, who is from NY. thanks

jeff belonger

Oct 15, 2009 09:38 AM
Robert Rauf
CMG Home Loans - Toms River, NJ

You are welcome Amy, Have a great weekend, and thanks for the comments.

Oct 16, 2009 02:16 AM
Robert Rauf
CMG Home Loans - Toms River, NJ

Good morning Jeff, so far it is GE which is encouraging since they have been the most conservative... but it is not in all 50 states. I dont have the guides in front of me, but I think it was the usual 4 that are considered high risk: FL, CA, NV and AZ. 

Oct 16, 2009 02:17 AM
Anonymous
Mike D

We are looking at a vacation home in our home state of West Virginia.  BofA said this isn't true.  What PMI/Mortgage company can I work with to get PMI on a vacation home?

Oct 28, 2009 05:19 AM
#7
Robert Rauf
CMG Home Loans - Toms River, NJ

Mike, It certainly is true. But it is possible that BofA is not willing to do it. Unfortunatly I can not do WV But some one should be able to. Genworth is the PMI company that is allowing it as of September

Oct 28, 2009 05:27 AM
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