Why Mortgage Insurance

Why mortgage insurance makes sense


Private mortgage insurance enables members to gain access to the housing market more quickly, by allowing down payments of less than 20%, and it protects Credit Unions against loss if a member defaults.

For the member, private mortgage insurance can provide:

  • Access to the housing market more quickly, by reducing the required down payment
  • Tax deductible premiums for eligible members
  • Range of payment options
  • Cancellation of Member-Paid MI (unlike FHA insurance)

For the Credit Union, private mortgage insurance can provide:

  • Broader range of loan products
  • Expanded pool of buyers with lower cash requirements
  • Wide range of insurance products
  • Faster, easier closes
  • Reduced exposure

The ability to originate loans for members with less than a 20% down payment is critical to serving first time homebuyers and expanding the opportunity of homeownership.

With affordable home prices and low interest rates, this is a great time for buyers to enter the market.  Private mortgage insurance allows buyers to purchase homes sooner while providing safer loans for lenders.

See the advantages of Private Mortgage Insurance over FHA.

why mortgage insurance infographic