Starting Sept. 16, Genworth will insure loans with a minimum 97% LTV and credit score as low as 620 that are approved by the GSE systems.
Delegated customers only have to “verify that the borrower contributed a minimum of 3% of the home purchase price from their own funds,” according to Genworth.
Previously, the private mortgage insurer allowed 97 LTVs with a minimum 680 FICO score and maximum debt-to-income ratio of 45%.
“The expanded Simply Underwrite guidelines offer customers our most competitive and flexible rates and guidelines, making it easier for them to close more loans, faster,” said John Clifford, Genworth senior vice president of commercial operations.
“These adjustments allow lenders to offer affordable low downpayment financing to help creditworthy Americans pursue their dreams of homeownership, and position Genworth USMI to pursue prudent growth.”
Fannie Mae allows a 97% LTV on its My Community mortgage products. Freddie will not insure mortgages with a LTV higher than 95%.
In August, the Mortgage Guaranty Insurance Corp. made changes to its underwriting guidelines that reduced the overlays on primary residences and second-home loans.