Improvements to requirements at Radian Guaranty Inc. include lower mortgage insurance premiums and the insuring of three- and four-unit residential loans.
Radian’s mortgage insurance premiums are being lowered for most FICO buckets. On non-refundable borrower-paid premiums, the new rates apply to all states except Alaska and Hawaii.
On refundable borrower-paid rates, the Philadelphia-based organization is expanding FICO categories from four to seven — though the new rates won’t be available in Alaska, Hawaii or New York.
The mortgage insurer revealed the updates Tuesday in Radian Announcement eBulletin #2018-2.
Radian noted that refundable rates are not available in Washington.
Radian said it will now insure loans secured by three- and four-unit primary residences. The maximum loan-to-value ratio and combined LTV ratio is 95 percent.
On its One Underwrite program, triplexes and fourplexes
will need an automated underwriting system “approve” or “accept.” The minimum credit score is 700, the three-unit maximum loan amount is $701,250, and the four-unit maximum loan amount is $871,450.
For manually underwritten loans, three- and four-unit loans can only be fixed rate. The maximum loan amount is $701,250, and the minimum FICO score is 720.
All of the changes impact mortgage insurance applications received on or after March 19.
