Conventional Program

Conventional Loans with Private Mortgage Insurance

Brief Description : MBOH allows borrowers to use private mortgage insurance provided by approved pmi providers for loans in the Regular Bond Mortgage Program. Private mortgage insurance allows for less stringent property conditions than FHA, and less stringent underwriting standards for borrowers. If a loan is unable to qualify for FHA, VA, or RD mortgage insurance, then it may qualify under pmi. In addition, these pmi companies have given MBOH special premiums that can be the margin of difference that allows a borrower to qualify for a loan that is beyond the limits of FHA, VA, or RD. An additional benefit under the pmi product is that, for the first five years of the loan, homebuyers may have up to 6 months of payment protection should they lose their jobs or become injured, at no extra cost. Homebuyers with 20% or more for a down payment may be eligible for the Deep Equity Program .

  • Borrower Eligibility Criteria:
    Income limits (click here)
    First-time homebuyer; waived for targeted area
    Home must be primary residence as long as the loan remains in place
    No asset limitations

  • Property Criteria:
     Purchase Price Limit of $237,031
    Limit of 15% use of property for business
    Land limited to 35% of value of property, ten-acre limit, with no subdivision or sale of land possible
    Manufactured homes have to be doublewide or larger, detitled and on a permanent foundation

  • Loan Criteria:
     Loan limit of $237,031
    IRS recapture provision-reimbursable by MBOH
    Hazard insurance $1,000 deductible all peril
    No lender fees allowed if purchased at 102%
    Taxes and insurance in escrow

    Underwriting Criteria:
    See underwriting criteria for either Genworth or for MGIC
    No expanded approvals allowed
    1004 full appraisal required, 1004C for manufactured, 1073 for condo

    Down payment Sources:
    Must be approved Fannie Mae source (click here )

  • Mortgage Insurance Information:
     Premiums charged above 80% LTV. If premium on the commitment sheet is higher than the rate given in the table below, then the reservation will not be approved. Note: % LTV rates are rounded up, i.e., 97% LTV would be at 100% rate rather than 95% rate.

    Current Mortgage Insurance Premium *
    LTV Factor for stick-built/double-wide manufactured homes
    100%

    .96

    95%

    .78

    90%

    .52

    85%

    .32


    * Rate may be .01% higher only if borrower is purchasing refundable mortgage insurance.
  • Lender Reservation and loan info:
    No origination or discount points, MBOH purchases loan at 102%
    Rate can be reduced 0.125% if buyer chooses to pay 2 points at closing and MBOH purchases loan at par
    Reservations valid 120 days for existing homes/ 180 days for new construction
    0.25% fee charged for extensions, 0.50% for cancellation
    Need any multi-lot/repair issues on appraisal addressed before closing

Reservations Process ~ NOTE: Special Reservation Criteria below

PREFER
 Input on Lender On Line web based reservation system

OR
Fax reservation to MBOH including:
Reservation cover sheet and required documentation listed

Special Reservation Criteria:
 Loan reservation is not automatic - must submit copy of pmi commitment sheet for review and approval by MBOH prior to reservation approval. See Exceptions on Lender on Line to check status.

updated 9/6/2007

This is a summary of the MBOH program only. For a complete copy of the terms and conditions see Mortgage Purchase and Servicing Guide and the Terms and Conditions of the set-aside