The maximum loan-to-value ratio on purchase transactions has been increased by PMI Mortgage Insurance Co.
The expanded LTV was laid out in a bulletin Tuesday from the mortgage insurer.
On conforming mortgages used for the purchase of a primary residence, PMI is raising the LTV to 97 percent.
The higher LTV doesn’t apply in distressed markets or on broker-originated and other third-party loans.
In addition to single-family detached residences — attached and detached condominiums and planned-unit developments are eligible.
Borrowers on 97 percent loans must have a minimum credit score of 720. Fixed-rate and hybrid adjustable-rate mortgages are available.
The 97 percent LTV goes into effect on Oct. 8.
