Selling Guide

Published April 1, 2020

The Selling Guide is organized into parts that reflect how lenders generally categorize various aspects of their business relationship with Fannie Mae. To begin browsing, select from any of the sections below. You may also download the entire Selling Guide in PDF format.

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What is the required mortgage insurance coverage for MH Advantage?

Mortgage Insurance Coverage Requirements

The table below provides the mortgage insurance coverage requirements for first–lien mortgages. For certain transactions, Fannie Mae offers two mortgage insurance coverage level options: standard coverage for the transaction type (noted with ^) and minimum coverage (noted with *) with corresponding LLPAs. Lenders who choose less than standard coverage (but no lower than minimum coverage) will be assessed an LLPA based on the LTV ratio and representative credit score for the mortgage loan. The minimum mortgage insurance LLPAs can be found in the Loan-Level Price Adjustment (LLPA) Matrix, and are in addition to any other LLPAs that may apply to the transaction. 

Mortgage Insurance Coverage Requirements
  LTV Range
Transaction Type 80.01 – 85.00% 85.01-90.00% 90.01-95.00% 95.01-97.00%
Fixed-rate, term ≤ 20 years including MH Advantage) 6% 12% 16%* + MI LLPA 18%* + MI LLPA
25%^ 35%^
Fixed-rated, term > 20 years; ARMs; and manufactured homes that are not MH Advantage 6%* + MI LLPA 12%* + MI LLPA 16%* + MI LLPA 18%* + MI LLPA
12%^ 25%^ 30%^ 35%^
HomeReady mortgage, fixed-rate, term ≤ 20 years (including MH Advantage) 6% 12% 16%* + MI LLPA 18%* + MI LLPA
25%^ 25%^
HomeReady mortgage, fixed-rate, term > 20 years; ARMs; and manufactured homes that are not MH Advantage 6%* + MI LLPA 12%* + MI LLPA 16%* + MI LLPA 18%* + MI LLPA
12%^ 25%^ 25%^ 25%^

The following additional requirements apply:

  • Mortgage insurance requirements for HomeReady apply when HomeReady and HomeStyle Renovation are combined.
  • The minimum levels (* with an LLPA) are eligible for HomeReady mortgages as indicated; however, the mortgage insurance LLPA will be assessed in all cases regardless of any LLPA limits.

See B7-1-04, Financed Borrower-Purchased Mortgage Insurance, for additional information about mortgage insurance coverage for financed mortgage insurance transactions. 

For additional information, see B7-1-02, Mortgage Insurance Coverage Requirements. 

 

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