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

[pattycake]

Wow - I got a low PMI - $44 a month on a $208K loan, but my loan was approved in late Feb/early March, so I may have just pulled in by the skin of my teeth. Keep looking around. My understanding that there are a LOT of companies that have pulled out of the PMI business or have greatly increased their standards, but there should still be some! Good luck.

[Anonymous]

Granny - with all due respect, what that person told you cannot be correct.  You don't need PMI at all if you put 20% down. 

PMI exists as insurance to cover the mtg lender in case you default and the home drops in price below the outstanding mtg loan - something that is happening ALOT these days.

Assuming the min 680 requirement is true, this only applies to those not putting 20% down......And these individuals should be trying to get an 80-10-10 loan.  80% first mtg, 10% HELOC and 10% cash, if you can swing it of course.

[ShanetheMortgageMan]

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jug13m wrote:

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.

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MyCommunity is for low-to-moderate income individuals or people who are purchasing in a low-to-moderate income area.  While it does make allowances for imperfect credit, it's not the mortgage program that is dictating the 680 required scores for 3% down, it's the mortgage insurance company.