MORTGAGE INSURANCE TIGHTENS THE NOOSE!!!
Through an official announcement just received, MGIC and other MI companies have just reclassified all of Arizona, 
California, Florida, Nevada as well as many counties in several states as “restricted markets”.
As such, here are their new guidelines for issuing Mortgage Insurance beginning March 3rd.
Mortgage Insurance will still be available on the following loans:
• 95% Loan-to-Value with a credit score of 680 (90% LTV with 620) based upon full documentation for Primary & Second Homes only.
Mortgage Insurance will NO LONGER BE AVAILABLE on the following loans:
• Any loan greater than 95% Loan-to-Value (good-bye 100% financing)
• Reduced Documentation or A-Minus (”Expanded Approval”) loans
• Investment properties of any kind
• Cash-out refinances of any kind
• Any loan with the potential of negative amortization.
New rules will also apply to any loan with LPMI (lender paid mortgage insurance) or One-time (up front) mortgage insurance policies.
These changes go into effect on March 3rd so if you’re considering something like this…
GET THE DEAL UNDER CONTRACT AND SECURE FINANCING NOW!!!
Note that FHA and VA loan programs are not affected.
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