Expanded underwriting guidelines at Radian Guaranty Inc. affect debt-to-income ratios, loan-to-value ratios and jumbo mortgage programs.
On purchase financing and rate-term refinance transactions, the maximum DTI ratio has been expanded to between 45.01 percent and 50 percent.
The higher DTI ratio applies to home loans that are secured by primary residences and have an LTV ratio that doesn’t exceed 95 percent.
The updates were outlined in Radian eBulletin 2016-1.
For cashout refinances, the mortgage insurer said that the maximum LTV ratio
has been increased to 90 percent.
The higher LTV ratio is effective on loan amounts up to $417,000, though the amount can be as high as $625,500 in Alaska and Hawaii.
Finally, the Philadelphia-based firm’s super-jumbo program has been expanded to include condominiums to $850,000.
Radian noted that the updates
apply to its standard guidelines but not its One Underwrite program.
The expanded guidelines are effective on M.I. applications that are received on or after Feb. 15.
