Changes being made by Radian Guaranty Inc. will make it easier to qualify for jumbo mortgages, loans for medical professionals and transactions with alternative downpayment sources.
For manually underwritten loan applications on borrowers who aren’t using their own savings for the downpayment, the minimum FICO score is being cut to 680.
The new minimum applies when applicants are using personal gifts and gifts of equity as well as grants from employers, non-profit organizations and non-profit credit unions.
The updates were described in eBulletin #2017-6 issued Friday.
For jumbo mortgages, the minimum balloon period is being cut to five years. In addition, minimum FICO scores on loan amounts up to $650,000 with loan-to-value ratios of 95 percent are being lowered to 680. The changes more closely align with Radian’s high-balance eligibility requirements.
On its medical professional program, the Philadelphia-based company is raising its maximum debt-to-income ratio to 45 percent. The change aligns the program with its
non-medical eligibility requirements.
In addition, Radian said it will no longer require that a minimum percentage of income comes from an active medical practice for medical professors with deferred student loans.
The updates apply to M.I. applications received on or after Oct. 30.
