Changes to
Radian
Guaranty Inc.’s guidelines increase some loan-to-value ratios, ease credit requirements and make construction loans easier to do — among other things.
Radian
said Monday that it will consider home loans to legal guardians who are providing housing for physically handicapped or developmentally disabled children as primary residences.
The move is in line with Fannie Mae’s selling guide update published on May 26 about property occupancy types.
Radian outlined the update in
eBulletin 2015-3.
On One Underwrite loans, cashout refinances are now available with up to 85 percent LTV ratios.
Non-agency jumbo loans can have LTV ratios up to 90 percent on second homes and 95 percent on co-op primary residences.
Radian will insure adjustable-rate mortgages with initial fixed periods of three years. The change impacts purchase transactions and rate-term refinances on single-family primary residences and second homes. The same goes for 5/1 and 5/5 ARMs.
The
Philadelphia-based firm said it will allow 12-month commitments on new construction and construction-to-permanent financing on second homes. Both standard conforming and non-agency jumbo loans are eligible.
However, there can now be no late payments during the construction phase.
Seller credits up to three percent for repairs or decorating
can be included in the interested party contributions subject to established limits at Fannie and Freddie Mac.
Radian noted in the bulletin that a mortgage history is no longer required to be part of minimum trade lines. Also, one percent of the unpaid balance can be used for student loan payments not reflected on the credit report. Another update is the inclusion of salary increases within the past 90 days.
In April, Radian announced it will offer unemployment insurance for borrowers who make down payments of less than five percent.
The
Radian MortgageAssure provides up to six monthly payments for up to $1,500 each for a total of up to $9,000.
The change impacted mortgage insurance applications received on or after May 1. Coverage is automatic on loans for
primary, owner-occupied, single-family homes with LTV ratios between 95.01 percent and 97 percent.
