Home-loan restrictions

Deseret News (Salt Lake City), Mar 21, 2008

Major mortgage insurers are applying restrictions to properties in markets identified as declining or distressed. The restrictions include:

-- 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.

Source: Associated Press