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New News about MI (Mortgage Insurance); Guidelines are finally loosening up

Yes, we have all been impacted by MI guidelines tightening up whether you were involved in purchasing a Condo or trying to do a one-time close construction with less than 20% down. This is what is coming down the pipeline on the MI front.

MI companies are once again beginning to insure one-time close construction loans with LTV limits up to 90% so long as the following stipulations are met:

· Conforming loan limits only

· 720 plus fico score for all borrowers

· 41% Maximum DTI

· 9 month maximum construction period for LTVs over 80%

· Subject property must be located in a plated and recorded subdivision

· All borrowers must have been on their current job for at least 3 years

I know it’s fairly stiff but at least it can be done. On a side note I have a conference call on Friday the 17^th of June where I will be getting the inside scope on Condos as far as MI is concerned. I know I have quite a few realtors and builders that got hosed because MI companies would not insure condos and the condo regime was not HUD approved. I will be following up with that info on this coming Friday, please feel free to call me if you have any questions.

Samuel Morales

Samuel@yourloanofficer4life.com