PMI Companies Strike Again!

The following message is addressed to conventional loan applicants only. FHA insured mortgages are covered by the Mortgage Insurance Premium program guidelines (MIP).

Effective on April 7, 2008 due to additional restrictions imposed by the mortgage insurance companies, XYZ will no longer be able to accept or approve the following loans:

LP A Minus Loans with LTV greater than 80%, regardless of FICO, on the following: (These loans do not quite meet the guidelines but they are not the subprime type. Borrower will need at least 20% equity or down payment to be approved at a slightly higher interest rate!)

Investment Property: Property held for rental income
Second Home: Not your principal residence
3-4 Units:
Manufactured Home

Cash Out: Borrow more than the existing loan balance

These changes affect any Conventional or Home Possible loan as applicable. Any loan that has already been issued an underwriting approval must close by end of business on April 18, 2008. Any loan that has not been issued an underwriting approval, regardless of lock or submission date, or is unable to meet the closing deadline must meet new guidelines. We are unable to offer any exceptions on these changes as XYZ is unable to obtain mortgage insurance coverage on these loans at this time.

The above is only one of the many updates that we receive on a daily basis from funding sources. Bringing this information to you aims at making you aware of the issues that you may face when you are applying for financing.