Recently, there are a few positive changes to mortgage insurance that are summarized below: (Keep in mind these are all changes that impact only conventional loans.)

The Washington, DC (CBSA-47894) area has been removed from the declining market list.

As a result, the minimum credit score requirement for conforming loans of up to $417,000 will be reduced to 680 from 700.  Also allowed will be non-condo and non-PUD loans up to 95% of the sales price.

Additionally, the agency-plus loans of between $417,000 and $729,750 will now allow up to a 90% loan for non-condo and non-PUD properties.

In the near future, the max DTI (debt-to-income) of 41% will be increased to 45% if FICO is 740 or greater.  The minimum FICO of 680 will be reduced to 660 on purchase transactions of 1-unit properties up to 95% LTV (loan-to-value).  I expect these last two changes to be in place within the next 2 months.

I hope that these changes are a sign of a rebound and recovery in the real estate market.

If you have any questions on this, or anything financing-related, please let me know.