March 29, 2017

Good credit, a down payment and patience all needed as of June 1, 2008 to buy a home in the Louisville Kentucky area.

Blame it on the number of short sales in Kentucky! The Mortgage Guaranty Insurance Corporation (MGIC) has just announced that as of June 1, 2008 the entire state of KY will become a restricted market.  What does this mean to you as a buyer?  You can no longer take advantage of a 3% down payment loan with Lender Paid Mortgage Insurance.

According to the MGIX websiteIn determining whether to place a market on the restricted markets list, MGIC uses both external and internal information sources including OFHEO Home Price Indices, National Association of Realtors change in median home prices, Moody’s Economy.com home price projections and MGIC’s own proprietary business mix and performance data.”

 According to local lenders, more than likely there will be additional loan programs that KY will not be able to utilize.  Jefferson County has seen a recent spike in short sales causing the MI companies to become very cautious.

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