One of our (national) lenders has just issued an announcement of program changes. Keep in mind, this is one lender - others may or may not follow suit. A few highlights:
Rate/Term refis on investment properties capped at 80% LTV. Although Fannie Mae and Freddie Mac will still go to 90%, this lender states that "LTVs greater than 80% are no longer allowed as a result of mortgage insurance retractions."
Florida condo products & LTVs. Only conventional (Fannie Mae/Freddie Mac & Govt) loans for condos in FL. Also, the LTV limit on those conventional mortgages will be 80%, effective next week. Could this trend spread to other states? Condo guidelines are becoming much more restrictive.
FHA 1yr Treasury ARM no longer allowed. Yeah, good thing. Begs the question: Why did FHA offer a 1yr ARM anyway?!
Veteran Affairs ARMs discontinued. For good reason - com September 30, 2008, the VA's authority to make adjustable rate mortgages will expire unless Congress extends it. Information on this is sparse and the VA is certainly not advertising it, but National Mortgage News has a one liner about it in a short piece re: the VA loan limit increase.
I'll make this a regular post - mortgage guidelines are changing constantly (mostly more restrictive).
Monday, August 11, 2008
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