Improving conditions in the Sunshine State’s real estate market have prompted at least one mortgage insurance company to ease lending requirements in the state.
Since at least January 2009, United Guaranty’s guidelines have indicated that all attached housing in Florida — including condominiums, cooperatives and townhomes — is ineligible for insurance.
But the American International Group subsidiary is making changes to that policy, according to a new customer announcement.
Mortgage insurance applications received by the Greensboro, N.C.-based company on or after July 8 will no longer be subject to underwriting restrictions for Florida condominiums.
Instead, condominiums in the state will be subject to the same underwriting requirements as those for one-unit properties, United Guaranty said.
The change applies to underwriting requirements for Performance Premium Full-File and the Reporting Acceptance Program, or RAP.
“This is due to the level of improvement in the Florida housing market,” Customer Announcement CA2013-07 stated.
