Mortgage Insurance Squeeze Is On

Tabitha Bennet of Signature Mortgage Group (816.582.4742) sends us this cheerful news regarding private mortgage insurance and how it pertains to investment property.  Keep in mind this isn’t the only private mortgage insurance company out there.  But…

Changes Effective with MI applications received June 1, 2008

All-Markets Underwriting Changes

 o The following will no longer be eligible for MGIC mortgage insurance: 

ƒ Expanded Criteria / A-minus loans

ƒ Reduced Documentation / Alt-A loans 

ƒ Investment properties 

ƒ Cash-out refinances 

ƒ 3- to 4-unit properties 

ƒ Loans with potential negative amortization 

ƒ Nonwarrantable condominiums (per GSE definitions) & 

ƒ Condotels