Underwriting guidelines that were relaxed by Radian Guaranty Inc. impact loans used for new construction, jumbo mortgages and loans to medical professionals.
On One Underwrite mortgages approved through automated underwriting systems, the minimum FICO score on investment properties has been dropped to 680.
Radian explained that the lower credit score applies to AUS responses of “Approve,” “Accept/Eligible” and “Ineligible” on both purchase financing and refinances.
The Philadelphia-based company outlined the updates Monday in Radian eBulletin 2016-7.
Loan-to-value ratios on FHFA high-balance new-construction and construction-to-permanent One Underwrite loans with 12-month commitments and AUS responses of “Approve” and “Accept/Eligible” have been raised to 95 percent.
Radian’s medical professional program has been expanded to include
medical professors with at least 60 percent of their earnings coming from an active medical practice.
Also now eligible for the program, which doesn’t require AUS, are physician assistants.
The mortgage insurer added a tier to the medical professional program that allows the LTV ratio to go as high as 97 percent on conforming loan amounts as long as the FICO score is at least 700 and borrowers contribute at least 3 percent of their own funds.
Second homes and attached condominiums are now eligible for the super jumbo program with loan amounts up to $850,000. The minimum FICO score is 740, the maximum debt-to-income ratio is 43 percent, and no AUS is required.
The changes impact all M.I. applications received today or later.
