Starting in the next couple of weeks the private mortgage insurance companies will be rolling out new guidelines for the mortgage industry to follow. Those being effected will be borrowers looking to put less than 5% down with lower than 680 credit scores, stated income with less than 10% down and I would imagine there will be PMI rate adjustments to follow as well.
What can you do if you are looking to buy a home and have less than 5% down and credit scores below the 680?
Two things - 1 -Make sure you do talk with a lender that can originate not only conventional loans, but FHA/VA or USDA Rural Development packages. These all require less than 5% down payment and currently have no price hits for credit score unless the lender themselves have imposed a price hit. 2 - Speak with a lender today and figure out where your credit score is. If it below 680 request a detailed plan of action to help increase your credit score. This should be done for anyone with less than 30% down payment because the credit score adjustments as of June 1, 2008 are going to be excessive and cost borrowers thousands of extra dollars PER YEAR!!!
I have been in the mortgage industry for the past 15 years. We distribute the products mentioned in this blog. If you would like some free information, please email requests to vin@alliedhomenet.com. We are licensed in all 50 states aa a lender and broker.
What ever info I can help you with please ask. I like helping people save money and buy homes.
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