Radian Guaranty Inc. is making several changes to its guidelines that include new jumbo lending options, rate premiums that accommodate Qualified Mortgage requirements and one-time closings for construction-to-permanent loans.
The minimum credit score on standard loan-to-value ratios above 95 percent is being lowered to 680 from 720.
On the mortgage insurer’s One Underwrite program, the new minimum credit scores on mortgages with LTV ratios in excess of 95 percent is being cut to 620.
The Philadelphia-based firm outlined the updates Friday in Radian eBulletin 2014-2.
Cashout transactions will now be available for properties in Arizona, California, Florida, Michigan and Nevada. In addition, Florida homes will now be eligible for second-home purchase financing and rate-and-term refinances.
Second home purchases and rate-and-term refinances are being made available on non-agency jumbo loans up to $625,000. The minimum credit score is 680, the maximum LTV ratio is 85 percent and the debt-to-income ratio is limited to 41 percent.
Radian said it will insure home loans that finance improvements up to a maximum of 35 percent of the completed value.
A single-close option is being added to conforming construction-to-permanent transactions with LTV ratios up to 90 percent. Jumbo loans in this category up to $625,500 are limited to 41 percent DTI ratios, require credit scores of at least 680 and have 12-month commitments.
Construction-to-permanent loans are now available with 12-month commitments on properties located in Arizona, California, Florida, Michigan and Nevada.
While the single-close option doesn’t apply to One Underwrite loans, a two-close option with a 12-month commitment is available.
The mortgage insurance company said it will no longer require a minimum borrower investment of 3 percent on loans up to $417,000 as long as certain requirements are met.
Radian’s affordable housing program is being expanded to include additional purchase and rate-and-term refinance options on some agency and non-agency programs. The expansion includes new LTV ratios, combined LTV rations, credit scores and DTI ratio options.
Among several changes outlined to its mortgage insurance premiums are reduced fixed rates on most coverage with FICO scores of at least 700.
In addition, in support of QM compliance, Radian said it is again offering refundable borrower-paid single premiums, refundable SplitEdge premiums and a three-year refund schedule.
Full details about rate changes are online at www.radian.biz/page?name=RatesAndGuidelinesNew.
The updates take effect on mortgage insurance applications received on or after April 14.
