Just a quick update on the Mortgage Industry. On the 1st of April we saw some significant changes that will affect the way mortgages are being approved. One of the biggest factors is the ability to obtain 100% mortgage insurance. The major players in the Mortgage Insurance business dropped their coverage to a maximum of 97% loan to value which will require all buyers to have a minimum of 3% down plus closing costs to get into a home. The credit score requirements have also gone up across the board. You will need a 660 or higher to be able to get in on the good MI rates and if your score falls below a 660, there is a substantial hit to the rate. The minimum score is a 620 for 97% coverage. If your score falls below a 620 then the MI coverage maxes out at 95% LTV.

Most investors have also tightened up the reigns a little bit too. As of the 1st of April most investors will have a minimum credit score requirement of approximately 580 for any FHA insured loans and a 620 for Conventional loans. The maximum Debt to Income Ratio regardless of FNMA or FHA guidelines will be approximately 50% DTI.

Of course we still have 100% financing for our 1st Time Homebuyers. The average out of pocket expense for WCDA buyers is about $1,300 to $1,500. WCDA requires the borrower to cover the cost of the appraisal, 1st year of insurance and the credit report.

Overall the rates are staying favorable and slowly dropping. This will be good for those looking to buy and especially refinance.