Lenders and insurers are adding more restrictions on loans and mortgage insurance as defaults soar and insurance claims skyrocket.

Type in a ZIP code to see if it's on mortgage insurers Radian Group Inc. or AIG United Guaranty's lists of declining markets.

Insurance on mortgages in these markets are subject to certain restrictions.

Following are 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.

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