Posts Tagged ‘mortgage insurance’

PMI Companies: “680 or Better Please”

If you are seeking 100% mortgage financing with conventional lending, you better get ready to come to the table with solid credit. While Fannie Mae is still offering 100% mortgage loans for Charlotte home purchases, private mortgage insurance companies are making it tougher. Private mortgage insurance companies insure mortgage loans over 80% loan to value against borrower default. So if a borrower fails to pay and the lender must foreclose, the private mortgage insurance company would protect the lender from excessive loss. With the rise in foreclosures around the nation, beginning in March, these private mortgage insurance companies will refuse coverage to any borrower seeking a 100% mortgage loan with credit scores under 680. And since they are the foundation of risk management for Fannie Mae loans, it will handicap Fannie Mae’s ability to provide no money down mortgage loans without great credit.

The good news is that Charlotte FHA mortgage loans are still a viable option for home buyers with credit scores below 680. As a matter of fact, many Charlotte FHA lenders will still accept FHA mortgage loan applications with credit scores down to a 580. There are still a few that ignore credit scores, but those are getting fewer and fewer everyday.

The bottom line is this… Everyone involved in the mortgage process is looking for a return to traditional mortgage programs and guidelines. Lenders, investors and now the PMI companies want good credit and good equity in the mortgages they offer and insure.

If you have less than perfect credit, don’t dispair. While things aren’t as easy as they were a year ago, there are still programs to make your dream of owning a home come true. It may take a little more work and time now, but with the right advice you can make it happen.

Call us today and let us help you get qualified for the home of your dreams in Charlotte (or anywhere in the Carolinas!) Or apply online and get things going quicker!

877-411-9327 Phone or Apply Now.

PMI In a Nutshell (IAN)

Ok. So the headline was designed to get your attention. After all, PMI (private mortgage insurance) isn’t the sexiest of topics. But it is a critical part of the mortgage process today. For most people, private mortgage insurance is the only way they will be able to buy a home or refinance their existing mortgage! So with something so critical to this process, maybe we should discuss it a bit, don’t you think?

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According to a Countrywide bulletin this morning, the private mortgage insurance companies have raised the bar for 100% mortgage loans in Charlotte and the entire country. Now to qualify for a conforming conventional mortgage loan, you will need to have Read the rest of this entry »