THDA/ Conventional Loan changes Effective March 31, 2008

Real Estate Agent with RE/MAX Elite

TBrentwood TN Real Estate

he following changes will become effective March 31, 2008:

•·         The maximum LTV/CLTV cannot exceed 97%.

•·         Seller concession cannot exceed 3%.

•·         All MI certificates must be dated on or prior to March 31, 2008 on any conventional loan with 97.01 - 100% LTV and/or a 6% seller concession.

•·         These changes will become effective March 31, 2008, howeverCOMPLETE loan submission packages will be accepted  until April 15th with MI certificates dated correctly.

Please be advised that the following guidelines continue to apply for Conventional loans:

•·         All Conventional loans must meet Fannie Mae or Freddie Mac underwriting guidelines.

•·         The DU or LP report and findings must be included in the underwriting submission package and the underwriter must sign the 1008.

•·         THDA's required MI coverage, as stated in the Guide remains in effect for the time being for loans with LTV's between 78-97%. We are currently in discussions with our MI Partners pertaining to future required coverage amounts and discounted rates. We anticipate increasing the required coverage in the near future and you will be advised of any changes.

*information courtesy Tonya Esquibel, WR Starkey Mortgage, Brentwood TN*

Vanessa Stalets
Brentwood TN Real Estate

RE/MAX Elite



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Danny Thornton
R & D Art - Knoxville, TN
WordPress Guru
Vanessa, it is funny that you mention this as ours goes into effect at the end of the month. 100% financing is going away.
Mar 19, 2008 10:46 AM #1
Karen Kruschka
RE/MAX Executives - Woodbridge, VA
- "My Experience Isn't Expensive - It's PRICELESS"
Vanessa,  The key item is meeting FNMA and FHLMC guidelines.  If all lenders, not only HDA's followed the guidlines we wouldn't be in this mess,  Karen
Mar 20, 2008 02:46 AM #2
Jimmy McCall - Cunningham, TN
The Ex-Mortgage Consultant

Vanessa, Thanks for the update.  I am working a THDA right now using a FHA loan.  However, if you use the Great Advantage option my understanding is that the 4% grant can be applied to the downpayment and closing costs.  I do not think that has changed with the new changes.

Mar 24, 2008 01:53 PM #3
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Vanessa Stalets

REALTOR, Brentwood TN Homes, Real Estate
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