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Any pro's hear about the new minimum 680 for PMI?????

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Anonymous
Not applicable

Any pro's hear about the new minimum 680 for PMI?????

Quickly, I had an app in with Citi for a MyCommunity loan.  $299k sale price, 3%  down.  My mid score is a 656, 100k+ income, 15K reserves.  I get my appraisal done and my GFE delivered on Monday, then on Tuesday get a call from my broker saying that I can't get PMI anymore.  She told me that as of last week, when my app was already 2 weeks in by the way, that all of the PMI co's changed their underwriting criteria to 680+ FICOs only.  So now, I'm basically screwed and have to start from scratch.  I thought the point of the MCM was to get "credit challenged" or financially challenged people loans?  Also, how can they just pull the rug out from under me mid-application?  Do any pros know of any PMI companies writing for applicants with under 680 fico??  HELP!!!!!!!
Message 1 of 13
12 REPLIES 12
Junejer
Moderator Emeritus

Re: Any pro's hear about the new minimum 680 for PMI?????

jug, you are not that far from 680. Do you have some CC debt that you can pay down to 1-9% uti? If so, you can do a rapid rescore and make the points that way. I think that it costs about $30 per TL or something like that.






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Current Score: 849
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Message 2 of 13
demi
Established Contributor

Re: Any pro's hear about the new minimum 680 for PMI?????

Is this everywhere?  Everylender?  ...eek, my middle score went from 684 to 678 since I was mortgage approved...as my bills are being paid off, the accounts are being closed...this seems to be making my scores up and down just a few points.  Down to two accounts, one which will take 5 months to pay, the other two more, which, if they run me during that time frame, would hopefully give me a score above 680.  Time to check with my mortgage guy.

Starting Score: EQ 679, TU 697
Current Score: EQ 680, TU 672
Goal Score: EQ 720, TU 720


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Message 3 of 13
demi
Established Contributor

Re: Any pro's hear about the new minimum 680 for PMI?????

The more I think about this, it doesn't make sense...if FICO isn't a factor (or a biggie) in determining FHA, then there are going to be a huge number affected by this.

Starting Score: EQ 679, TU 697
Current Score: EQ 680, TU 672
Goal Score: EQ 720, TU 720


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Message 4 of 13
Anonymous
Not applicable

Re: Any pro's hear about the new minimum 680 for PMI?????

FHA doesn't have PMI, it has MIP, same service different product.
Message 5 of 13
demi
Established Contributor

Re: Any pro's hear about the new minimum 680 for PMI?????

Thanks...I guess I am just waiting for something to go wrong...everything is all approved, but 3 months off till house is done...
 
Hopefully good news for the original poster.

Starting Score: EQ 679, TU 697
Current Score: EQ 680, TU 672
Goal Score: EQ 720, TU 720


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Message 6 of 13
granny031350
Established Contributor

Re: Any pro's hear about the new minimum 680 for PMI?????

I talked to a lender today about a construction loan. I will try to explain what she said to me about the PMI.  What I heard her say is that with a score less than 680, you would need at least 20 percent down to get PMI.  With a score of 680 or higher, PMI is esier to obtain.  The lower the score, the more down payment is necessary to close the loan.  Maybe one of the mortgage experts can jump in here.  I heard her tell me that PMI is doable with lower score but tougher to get, no guarantee, and more skin needed.
Message 7 of 13
Anonymous
Not applicable

Re: Any pro's hear about the new minimum 680 for PMI?????

I know I'm close.  I had 4 cards that had almost all of my revolving debt (5k on 25k total) on them.  They were all at almost 50% (1400/2700, 160/300, 780/1600, 600/2300).  I paid 3 down to under 10% and one off fully.  That'll bring my overall util down to 12%, hopefully under 10% if my HSBC account ever updates.  Also, I'll have all cards with balances (only 5 of 16) under 10% except one (just did a BT).  I hope that gives me enough of a bump.  If not, I'll pay them all down to $0.  Anyone think that it will make that much of a difference if I bring them from 8% to 0%?  If it does, I'll do it.
 
 
I also got some info on the 680 today and it is true that w/ 20% down, PMI is ok.  I'm now looking into an 80/15 loan w/ 5% down and no PMI. 
 
I am still just so confused as to the fact that the MyCommunity loan is supposed to be for people with bad credit or limited funds or both, but it requires PMI on anything less than 20% down.  So, most people who probably need it can't get it.  Pretty crappy catch 22 if you ask me.
Message 8 of 13
Anonymous
Not applicable

Re: Any pro's hear about the new minimum 680 for PMI?????



jug13m wrote:
I know I'm close.  I had 4 cards that had almost all of my revolving debt (5k on 25k total) on them.  They were all at almost 50% (1400/2700, 160/300, 780/1600, 600/2300).  I paid 3 down to under 10% and one off fully.  That'll bring my overall util down to 12%, hopefully under 10% if my HSBC account ever updates.  Also, I'll have all cards with balances (only 5 of 16) under 10% except one (just did a BT).  I hope that gives me enough of a bump.  If not, I'll pay them all down to $0.  Anyone think that it will make that much of a difference if I bring them from 8% to 0%?  If it does, I'll do it.
 
 
I also got some info on the 680 today and it is true that w/ 20% down, PMI is ok.  I'm now looking into an 80/15 loan w/ 5% down and no PMI. 
 
I am still just so confused as to the fact that the MyCommunity loan is supposed to be for people with bad credit or limited funds or both, but it requires PMI on anything less than 20% down.  So, most people who probably need it can't get it.  Pretty crappy catch 22 if you ask me.


Even if all three of your score were 850 you still would be required to pay pmi if you dont have 20% down.  The simple fact is even the the high fico scorers are forclosing on their houses just as fast if not faster than the credit challenged.  While MY comm loans are for people with suspect credit the reason imo they were developed had more to do with people with low income who are already paying rent similar to a mortgage but dont have enough money left to save for the downpayment.  Also you might want to check what mortgage rates your getting on the 80/15 loan.  It's possible you'll pay just as much with that program instead of paying the pmi.  Remember that pmi is cancelled once your mortgage principal reaches 80% of the home value whereas the 80/15 loan is for 30 years unless you sell or refinance.
Message 9 of 13
Junejer
Moderator Emeritus

Re: Any pro's hear about the new minimum 680 for PMI?????

jug, If you can afford to pay down the CCs and still be okay with your down payment, then I would say go for it. Except don't pay them all to $0. Keep one or two with a ridiculous balance, like 1% or something. You're scored on both individual and overall uti.






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Message 10 of 13
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