Radian Guaranty Inc. has increased the allowable maximum loan-to-value ratio on some of its mortgage insurance products.
The Philadelphia-based firm said that its eligibility for temporary buydowns for LTV ratios up to 97 percent has been significantly expanded.
The expansion applies to both its One Underwrite and manually underwriting products. Cashouts are excluded, as are investment properties with a temporary buydown.
Radian spelled out the changes Friday in
eBulletin #2017-3.
On One Underwrite applications for Federal Housing Finance Agency high-cost loans, the maximum LTV ratio has been increased to 95 percent. The FICO and debt-to-income ratio is determined by the automated underwriting system.
For manually underwritten loans, the FHFA high-cost applications are now eligible for 95 percent LTV ratios. The minimum FICO score is 660, and the maximum DTI ratio is 45 percent.
Radian clarified that acceptance of the government-sponsored enterprises’ variances for assets don’t extend to lender-provided down payment funds.
The changes impact M.I. applications received on or after June 19.
