Loan requirements have eased up.
Typically, most people are financing their home purchase with a Conventional loan. A Loan beyond 80% of the purchase price requires mortgage insurance. The insurance can be paid monthly or paid in a lump sum by you or your lender.
However, underwriting requirements have just eased up from the Mortgage Insurance Companies. It's now possible to finance up to 97% of your purchase price for a primary residence or second home with easier qualifying. Just recently, the credit score requirements have been drastically lowered from a 680 to a 620 minimum score!
Traditionally, Mortgage Insurance Companies have had their own underwriting requirements. Now some will follow the guidelines that your lender requires with minimaladditional requirements. Lenders follow requirements set by Fannie Mae and Freddie Mac detailed in automated underwriting systems responses. Your lender will need a Desk Top Underwriter Approve/Eligible or Loan Prospector Accept/Eligible automated underwriting response, which is what is typically required for their underwriting with or without mortgage insurance. For more information, visit comortgagefinancing.com.
Thanks to Josh Groner for writing this article. Josh is a Branch Manager,Senior Loan Officer with UniversalLending. Contact Josh at 720.296.1740or email at jgroner@ulc.com.LMB# 100017829 NMLS# 248588.Regulated by the Colorado Divisionof Real Estate.
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