Mortgage Basics - "Urgent Breaking News"

Mortgage Guaranty Insurance Corporation (MGIC), one of the nations top provider of mortgage insurance announces major policy changes.

Effective March 3, 2009 MGIC is revamping credit score guidelines that will have a MAJOR effect with new and refinanced mortgages.

Current guidelines allow mortgage insurance (PMI) for consumers with a minimum LOW credit score of 575. Please note that while mid-credit scores are used to qualify for a mortgage, PMI is based on the LOW credit score (regardless of income). Starting on or after March 3, 2008 the minimum LOW credit score will be 620.

Along with a raise in scores the maximum loan-to-value (LTV) will be capped at 95% leaving thousands of potential homeowners unable 100% financing that has been available in the past. LTV's over 95% will now require a low credit score of 680.

The news for declining markets and expanded markets is even grimmer.  For a complete report of all of the changes please drop me a email or call and I will forward you a copy of the report.

Now more than ever it is important to get your contracts written and applications submitted. I will be available weekends and night to help you process.

Tony Grego - Indiana Mortgage Broker

 

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