If you've been to one of my FHA Training Sessions or you've read one of my many E-mails/Posts discussing FHA financing this e-mail may just put you over the edge with respect to wondering if you need/do not need FHA Financing as a tool for the next 2-3 years (I'm not even going to mention the Socialization of FNMA & FHLMC a couple of Monday's ago!).

This October, as our Summer Buying season ends and we head into the long rainy winter season, we are again reminded that Private Companies Insuring Mortgages and Private Companies that packaged them and turned them into Hybrid investment by-products (*ahem* Lehman Brothers) are getting kicked in the gut: HARD.

Private Mortgage Insurance companies are cutting back again for our Great State of California.
Most Notably PMI & Captain of Adverse Selection: Radian
Print the Entire Grid here & Above:

PMI Changes for California: October 1st

• Minimum FICO = 720 for >80% LTV loans
• MAX DTI = 45% Regardless of AUS Findings for > 80% LTV loans

Radian Changes for California: October 17th

• No longer offering 95% LTV Financing as before (across the board)
• only providing 95% LTV Financing through selected Lenders with LOW EPD/EPO - (Early Payment Default/Early Pay-Off)

Very likely this means you will now be limited to even fewer sources for FNMA 95% Loans.

MGIC Changes for California: October 1st

• Max LTV = 90%
• This company has had a Minimum FICO of 680 for quite some time.