Any Problems getting Mortgage Insurance? Declined? Seems like its lately really common occurance

[Anonymous]

Went through Chase underwriting but declined for MI, Chase does not inquire about MI until the last step in underwriting.  Guidelines changed recently. Missed closing, luckly got granted extension on closing for short sale.

30yr Conventional

90% loan 10% downpayment

717 FICO

38% DTI

Short Sale

[Anonymous]

conventional MI is a tough nowadays without some really high Fico scores.   Thats why so may people are going FHA right now even if they have the scores and the down payment.

[Anonymous]

At what point did they let you know you would not be getting the conv. loan? I'm in the process now...last night I got an email from the UW wanting to know who I wanted to use for homeowners insurance, so I'm thinking they are getting close...I've provided all other info. But I can't get a FHA. I was told I can only have 1 FHA. middel score is 692. Do MI only look for the 720 score or is there other factors involved?

thanks

[Anonymous]

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@Anonymous wrote:

conventional MI is a tough nowadays without some really high Fico scores.   Thats why so may people are going FHA right now even if they have the scores and the down payment.

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I *heard* that in many areas in Florida (where I live), even a 720+ can get you declined for MI on a conventional if you're buying in a declined area. That the majority of it depends on how much you put down (AKA, 720+ scores + 10% down + declined area = declined).

I dunno though. That's why I LOVE FHA!!!

[Anonymous]

I was notified on the last day of UW.  Chase policy it cannot be sent for MI unless underwiting is complete. 2months of UW and I was declined. 

LI NY, 10% down, 717 losest middle score, Short Sale, 38% DTI = NO MI

[Anonymous]

I think I got lucky. In Texas the cut off for PMI is 680....My LO said I'm good.

[medicgrrl]

The score guidelines are going to vary with the different PMI companies also.  If your lender says that you were declined due to credit score then ask if they have checked with any other PMI companies.  If you live in a declining market that will definitely make a difference since it puts the MI company and lender at a higher risk.

[MattH]

Here is "restricted market" information from MGIC, one of the largest providers of private mortgage insurance (restricted markets are markets where prices have been hit hard by the collapse of the bubble so they require higher FICO scores and bigger down payments):

http://www.mgic.com/guides/restrictedmarkets.html

And here are their rate cards:

http://www.mgic.com/rates/ratecards.html

Note that all of certain States (AZ, CA, FL, NV) are considered to be restricted markets.