In an effort to streamline the mortgage insurance application process, ""Mortgage Guaranty Insurance Corporation"":http://www.mgic.com/index.html (MGIC) introduced several changes to its underwriting guidelines.[IMAGE] [COLUMN_BREAK]
The company's new MGIC Go! Guidelines apply to both primary residence and second home loans that receive and are processed according to a Desktop Underwriter (DU) Approve/Eligible or Loan Prospector (LP) Accept/Eligible response.
Loans must meet several other overlays to be eligible: They must have a maximum loan-to-value ratio of 97 percent (or a 105 percent combined ratio), a minimum credit score of 620, and a maximum cash out of $150,000.
A few types of loans are ineligible under the new MGIC Go! Guidelines: investment properties; three- to four-unit properties, and condos and co-ops listed on MGIC's Ineligible Products List, among others.
""MGIC has been unwavering in our goal to help support a robust mortgage market with a focus on sustainable homeownership,"" said Sal Miosi, VP of marketing at MGIC. ""We believe that these significant changes to our MGIC Go! guidelines stays true to that mission while making the process of applying for MI [mortgage insurance] simpler.""