Mortgage Insurance Coverage Options
Fannie Mae and Freddie Mac offer a variety of coverage options. The table below details the standard coverage requirements. There may be more coverage offerings. Be sure to consult your automated underwriting system response and program descriptions.| LTV | Standard Fannie Mae Standard Freddie Mac Freddie Mac HomeOne℠ Fannie Mae RefiNow™ Freddie Mac Refi Possible℠ |
Standard Fannie Mae Standard Freddie Mac Freddie Mac HomeOne℠ Fannie Mae RefiNow™ Freddie Mac Refi Possible℠ |
HomeReady® Home Possible® |
HomeReady® Home Possible® |
HFA Preferred™ HFA Advantage® |
|---|---|---|---|---|---|
| Fixed with term > 20 years or ARM | Fixed with term <= 20 years | Fixed with term > 20 years or ARM | Fixed with term <= 20 years | Fixed with term > 15 years | |
| 95.01% - 97% | 35% | 35% | 25% | 25% | 18% |
| 90.01% - 95% | 30% | 25% | 25% | 25% | 16% |
| 85.01% - 90% | 25% | 12% | 25% | 12% | 12% |
| 80.01% - 85% | 12% | 6% | 12% | 6% | 6% |
The above coverage requirements are subject to change. Please refer to the Fannie Mae and Freddie Mac Seller Guides for up-to-date information.
MI Product Attributes
The product attributes affect the Payment Plan. The following chart highlights the differences between each product attribute by Payment Plan.| Product Attribute | Borrower-Paid Monthly | Borrower-Paid Single Premiums | CustoMize SplitEdge* | Lender-Paid MI Singles |
|---|---|---|---|---|
| Premium Structure | Regular monthly MI payments | One time premium paid in cash at closing or financed into the loan amount |
An upfront premium option is selected by the consumer to buy down the monthly MI premium to low rates. | A one-time MI Premium is paid through an interest rate adjustment. |
| Refundable | Refundable and non-refundable options available. |
The upfront premium is refundable if cancelled under Homeowners Protection Act. |
The upfront premium is refundable if cancelled under Homeowners Protection Act. | Not refundable. |
| Cancellation | Borrower requested cancellation rules determined by investor. | Borrower requested cancellation rules determined by investor. |
Borrower requested cancellation rules determined by investor. |
Cannot be cancelled prior to payoff. |
| Deferred Option Deferred: | Deferred: MI premiums are not collected at closing and begin with regular monthly payments. Non-deferred: MI premiums are collected at closing. |
Not available. |
Monthly recurring payment may be deferred. The upfront premium is required to activate the policy. |
Not available. |
| Renewal Type | Constant renewals are always calculated using the original loan amount. Declining renewals are recalculated using the unpaid principal balance. |
No renewals. | Constant renewals are always calculated using the original loan amount. Declining renewals are recalculated using the unpaid principal balance. | No renewals. |
| Financed Premium | Not applicable. | Not applicable. |
Upfront portion may be financed. *Not available in all states. |
Not applicable. |