Radian Guaranty Inc. said it will begin offering a one-year commitment on mortgages used to finance the construction of a residential property.
A new construction-to-permanent 12-month commitment has been introduced by Philadelphia-based company. The program is available for proposed construction and for properties that are already under construction.
The 12-month commitment will provide borrowers with assurance about pricing and loan approval during the construction period.
The new program, outlined in Radian eBulletin 2012-1, impacts M.I. applications received on or after March 26.
The mortgage insurer’s standard guidelines are applicable to the new program.
Coverage can be activated on existing permanent financing if the proceeds were used to fund construction and the home is completed.
“While mortgage insurance may be requested prior to or during construction, Radian does not insure construction only or loans during the construction period,” the bulletin stated.
Another update to Radian’s guidelines is the inclusion of co-ops originated under an agency variance as an eligible property type on the One Underwrite program.
The mortgage insurance company also clarified that “3 percent borrower own funds” need to come from the occupant borrower on loans with a non-occupant co-borrowers.
In addition, Radian said that loans qualified using non-traditional credit will now be eligible for single-premium rates.
