Coverage Requirements

Depending on the loan, Fannie Mae, Freddie Mac and investors require different levels of coverage for mortgage insurance (MI). The table below highlights their standard coverage requirements, as well as coverage requirements for HomeReady®, Home Possible® and Charter Minimum Coverages.

 

LTV
Standard
HomeReady/Home Possible
Charter Minimum Coverage *
Fixed-Rate with Term > 20 yrs or ARM Fixed-Rate with Term ≤ 20 yrs Fixed-Rate with Term > 20 yrs or ARM Fixed-Rate with Term ≤ 20 yrs
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%

Fannie Mae and Freddie Mac coverages are subject to change.

HomeReady® is a registered trademark of Fannie Mae.
Home Possible® is a registered trademark of Freddie Mac.
*Typically used for loans originated for state and local Housing Finance Agencies.