- The maximum loan-to-value (LTV) and combined loan-to-value (CLTV) ratios for adjustable rate mortgages (ARMs) is being lowered from 97% to 90% for 1-unit, primary residences for purchase and no cash-out refinances. This means you will need 10% down if you're buying a house and financing it with an ARM. The ratios are being lowered even more for other types of transactions.
- They are eliminating exterior-only appraisals and property inspections. This means only full, interior appraisals will be allowed. No more "drive-by" appraisals.
- They are raising the minimum credit score for ARM loans from 620 to 640.
And check out all our great tips on our blog:
By the way, don't forget to refinance your current mortgage. Rates are very, very low right now. Don't miss out! Call us today to get the details for your particular situation.