Conventional Mortgage Insurance Begins to Make a Comeback

By
Mortgage and Lending with Prospect Mortgage NMLS #151088

Over the last few months, some conventional Mortgage Insurance companies have loosened up on their underwriting guidelines.  This comes after nearly 3 years of pulling back and the tightening of those guidelines.

Starting November 1st, one MI company has expanded its 97% LTV program.  This new maximum LTV is currently limited to first time home buyers only.  Eligibility varies by zip code based on its status as a declining market.  Metro Atlanta is still limited to a 95% LTV at this time. 

For Second Homes, purchases and rate/term refinances are back up 90% LTV.  MI for Investment properties is still not available at this time. 

Each MI company does have lowered maximum debt to income ratios and increased minimum credit scores from what we saw on 2007 and before.  For the last 3 years, FHA has substantially increased its market share as conventional MI became more difficult to obtain.  For the policies that they have been issuing, the performance of those loans must be doing better for them to begin to expand eligibility once again.

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It is always advisable to consult with a knowledgeable lending professional when navigating today's turbulent mortgage and real estate marketplace.  I am committed, qualified and equipped to help you evaluate your options!

 

Also check out:

Conventional Financing Mortgage Program Overview/Updates

FHA Financing Mortgage Program Overview/Updates

Georgia Dream Down Payment Assistance Program Overview/Updates

HomePath Financing Mortgage Program Overview/Updates

USDA Financing Mortgage Program Updates  

Programs Include:

  • Conventional (Fannie Mae & Freddie Mac)
  • HomePath - #1 Volume Retail Lender
  • HomePath Renovation
  • FHA
  • FHA 203K Renovation Loans (Streamline or Consultant)
  • Georgia Dream Down Payment Assistance
  • Jumbo
  • USDA
  • VA
  • Conventional Condo Project Approvals
  • FHA DELRAP / HRAP Condo Project Approvals

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Rodney Mason is a Sr Loan Officer located in Atlanta, GA.  He is also 203K Renovation Loan and HomePath REO Property Specialist.  He can be reached at (404) 591-2453.

Providing financing for cities across Georgia including: Acworth, Albany, Alpharetta, Athens, Atlanta, Augusta, Austell, Avondale Estates, Blairsville, Bloomingdale, Blue Ridge, Bogart, Brunswick, Buckhead, Buford, Canton, Carrollton, Cartersville, Chatsworth, Clayton, College Park, Columbus, Commerce, Conyers, Covington, Cumming, Dahlonega,  Dacula, Dalton, Dawsonville, Decatur, Doraville, Douglasville, Duluth, Dunwoody, East Point, Fayetteville, Flowery Branch, Gainesville, Greensboro, Hampton,  Hapeville, Hinesville, Hiram, Jackson, Jefferson, Jonesboro, Kennesaw, Lagrange, Lawrenceville, Lilburn, Lithia Springs, Macon, Madison, Metter, Morganton, Morrow, Newnan, Norcross, Oakwood, Peachtree City, Pooler, Richmond Hill, Riverdale, Rome, Roswell, Sandy Springs, Savannah, Scottdale, Statesboro, Stockbridge, Stone Mountain, St Marys, Sugar Hill, Suwanee, Thomasville, Thunderbolt, Tucker, Tybee Island, Valdosta, Waleska, Warner Robins, Waycross, Wilmington Island, Winder, Woodstock, and many more.


Providing financing for cities across Alabama including: Alabama Port,
Anniston, Athens, Auburn, Bessemer, Birmingham, Boaz, Bridgeport, Cedar Bluff, Chickasaw, Clayton, Coden, Dauphin Island, Decatur, Dothan, Eufaula, Fairfield, Fairhope, Florence, Foley, Forestdale, Fort Morgan, Fort Payne,Gasden, Grand Bay, Gulf Shores, Heron Bay, Homewood, Hoover, Jasper, Josephine, Madison, Meadowbrook, Midfield, Mobile, Mon Louis, New Hope, Orange Beach, Oxford, Oyster Bay, Phenix City, Prichard, Rainbow City, Saraland, Satsuma, Scottsboro, Selma, Troy, Theodore, Tillmans Corner, Trussville, Tuscaloosa, Vestavia Hills, Warrior and many more.

 

               

NMLS #151088 - Licensed in AL & GA.  HomePath® is a registered trademark of Fannie Mae.

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Show All Comments
Rainmaker
598,880
Donne Knudsen
Los Angeles & Ventura Counties in CA - Simi Valley, CA
CalState Realty Services

Rodney - I've never had to much trouble with this because I've always been able to use MCM or Flex 97 whenever I needed to. 

Nov 04, 2010 11:41 PM #1
Rainmaker
344,413
Rodney Mason
Prospect Mortgage - Atlanta, GA
FHA 203K, USDA, VA, HomePath Renovation Specialist

Good for you.  Most all MI companies significantly lowered max LTV'sin GA in '07/'08.  Some MI companies are still maxed at 90% in GA.   

Nov 05, 2010 09:26 AM #2
Rainmaker
161,050
Ryan Case
SCA Real Estate - Anaheim, CA
877-828-0710

Its always great to see new loan programs making a comeback!

Nov 05, 2010 01:35 PM #3
Rainmaker
344,413
Rodney Mason
Prospect Mortgage - Atlanta, GA
FHA 203K, USDA, VA, HomePath Renovation Specialist

Yes it does.  I would have to imagine that the MI company's loan performance has improved for them to make such a change.

Nov 06, 2010 01:54 PM #4
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Rainmaker
344,413

Rodney Mason

FHA 203K, USDA, VA, HomePath Renovation Specialist
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