Introduction
This topic contains information on mortgage insurance coverage requirements for first-lien mortgage loans.
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% |
| All property types (including MH Advantage) other than standard manufactured homes | ||||
| Fixed-rate, term ≤ 20 years | 6% | 12% | 16%* + MI LLPA | 18%* + MI LLPA |
| 25%^ | 35%^ | |||
| Fixed-rate, term > 20 years All ARMs | 6%* + MI LLPA | 12%* + MI LLPA | 16%* + MI LLPA | 18%* + MI LLPA |
| 12%^ | 25%^ | 30%^ | 35%^ | |
| HomeReady mortgages: Fixed-rate, term ≤ 20 years | 6% | 12% | 16%* + MI LLPA | 18%* + MI LLPA |
| 25%^ | 25%^ | |||
| HomeReady mortgages: Fixed-rate, term > 20 years All ARMs | 6%* + MI LLPA | 12%* + MI LLPA | 16%* + MI LLPA | 18%* + MI LLPA |
| 12%^ | 25%^ | 25%^ | 25%^ | |
| Standard manufactured homes (not MH Advantage) | ||||
| Fixed-rate, ARM, any term | 6%* + MI LLPA | 12%* + MI LLPA | 16%* + MI LLPA | Not applicable |
| 12%^ | 25%^ | 30%^ | ||
| HomeReady mortgages | 6%* + MI LLPA | 12%* + MI LLPA | 16%* + MI LLPA | |
| 12%^ | 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.
Recent Related Announcements
The table below provides references to recently issued Announcements that are related to this topic.
| Announcements | Issue Date |
|---|---|
| Announcement SEL-2019-07 | August 07, 2019 |
| Announcement SEL-2019-03 | April 03, 2019 |
| Announcement SEL-2018-06 | August 07, 2018 |
| Announcement SEL-2018-05 | June 05, 2018 |