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William Murphy

Fairway New England Mortgage

5 Albert Street

Auburn, MA 01501

508-407-8300 (phone)

508-407-8304 (fax)

Subject: IMPORTANT MORTGAGE INFORMATION….PLEASE READ!!

As many of you may know, home values have depreciated over the last two years. Mortgage Insurance companies/Lenders have deemed Worcester County to be in a declining market.

What does this mean in lenders’ terms for a person seeking a mortgage loan?

The following transactions will not be eligible:

· Loan-to-Value ratios over 95%

· A Minus Loans

· Stated Income Loans

· Cash out transactions

· Investment Properties

The following Loan-to-Value (LTV) and credit score limits will be effective for transactions in a declining market:

· 90.01-95% LTVs require minimum credit score of 680

· 80.01-90% LTVs require minimum credit score of 620

· Loans with LPMI (lender paid mortgage insurance), from 80.01-95% LTV, require a minimum credit score of 720.

Ensure your buyers and sellers are prepared in the upcoming months. This information is crucial to enable your clients to obtain mortgage financing. To find out how to overcome these restrictions, please give me a call for a consultation on these issues as well as other related topics.