Selling Guide

Published September 4, 2018

B7-1-02: Mortgage Insurance Coverage Requirements (08/07/2018)

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-rated, 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%^

Note: The minimum levels (* with an LLPA) are

  • not eligible for DU Refi Plus and Refi Plus loans, unless the existing loan has minimum levels of mortgage insurance coverage. No mortgage insurance LLPA will be assessed on DU Refi Plus and Refi Plus loans. See B5-5.2-01, DU Refi Plus and Refi Plus Eligibility.

  • 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.

Related Announcements

The table below provides references to the Announcements that have been issued that are related to this topic.

Announcements Issue Date
Announcement SEL-2018-06 August 07, 2018
Announcement SEL-2018-05 June 05, 2018
Announcement SEL-2015–10 September 29, 2015
Announcement SEL-2015–01 January 27, 2015
Announcement SEL-2013–07 September 24, 2013
Announcement SEL-2013–06 August 20, 2013
Announcement SEL-2012–06 June 26, 2012
Announcement SEL-2010–07 May 27, 2010
Announcement SEL-2010–06 April 30, 2010
Announcement 09-29 September 22, 2009