MORE Lending Changes - NEW Mortgage Insurance Guidelines

By
Mortgage and Lending with Guaranty Bank & Trust Co NMLS ID #68160

It just got harder to finance greater than 95% financing.  Here is an excerpt from one Mortgage Insurance Company.  All three companies that I have checked so far are making similar changes.

These changes only affect conventional Fannie and Freddie loans - regardless of AUS (Automated Underwriting System) findings.  Government loans (FHA, VA , USDA) are not affected by this change. 

Read below.  This is an excerpt from one company.

Standard (A) guideline changes:

• LTVs greater than 95% require a minimum credit score of 680.

• LTVs 95% or less require a minimum credit score of 620.

• Loans with nontraditional credit require a manual underwrite and are limited to a maximum LTV of 95%.

• Primary residence cash-out refinances require a minimum credit score of 680; and the maximum LTV is 90%.

• Cash-out refinances of investment property loans are ineligible.

• Loans with potential negative amortization, including Pay Option ARMs, are ineligible.

Expanded Criteria (A-) guideline changes:

• The maximum LTV is 95%.

• The minimum credit score is 660.

• Primary residence cash-out refinances require a minimum credit score of 680. (The current maximum LTV of 90% remains.)

Reduced Documentation (Alt-A) guideline changes:

• The maximum LTV is 90%.

• The minimum credit score is 660.

• At least 50% of qualifying income must come from self-employment.

As I had mentioned, the other three companies I checked were all making similar changes to their guidelines.  One company even made their guidelines tighter than what is listed above.

Credit counseling anyone?

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Rainer
58,173
Don Draughn - Mortgage Professional
High Point, NC

Great information, Doug.  It is very useful to have all of this in one place.

Feb 15, 2008 01:47 AM #1
Rainer
45,132
Scott Geary
Infinity Home Mortgage Company Inc - Allentown, PA
Your Pennsylvania Mortgage Source

Nicely done Doug! Looks like we are finally to a place where 'Joe Average' needs some decent credit and scratch in pocket to buy a home. We'll no longer have Renters, incognito as Home Owners!

Glad to see you back on the Blog!

Feb 15, 2008 02:14 AM #2
Ambassador
272,883
Eleanor Thorne
Equity Resources - Cary, NC
Equity Resources 919-649-5058
thanks! I appreciate you putting this together!
Feb 18, 2008 08:10 AM #3
Ambassador
272,883
Eleanor Thorne
Equity Resources - Cary, NC
Equity Resources 919-649-5058
thanks! I appreciate you putting this together!
Feb 18, 2008 08:10 AM #4
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Doug Capps

MMS, CLO, CRMS
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