New limits on mortgages
Some of the restrictions major mortgage insurers are applying to properties located in markets identified as declining or distressed:
A borrower can’t receive more than 95 percent in financing; in some cases, the highest amount allowed is 90 percent.
Loans for investment properties, second homes and manufactured homes are ineligible.
Interest-only, option-payment and two-or three-year adjustable-rate mortgages are ineligible.
Refinances that allow the borrower to extract all of a home’s equity are ineligible.
Loan amounts greater than $650,000 are ineligible.
