Major Mortgage Insurer Tightens Standards

The Associated Press is reporting that, beginning in March 2008, MGIC Investment Corp., the country's biggest mortgage insurer, will require at least 5% down on homes in Atlanta (as well as a number of other "restricted markets"). Condo buyers will have to put at least 10% down. The company will also refuse to insure mortgages with little or no documentation and will not insure investment property. Also, buyers in the restricted markets who put down 10% will have to have FICO scores of at least 620 out of 850 -- buyers putting down less than 10% will need FICO scores of at least 680.

Mortgage insurance is typically required on home loans when the buyer is putting less than 20% down.