© Fannie Mae Single Family Selling Guide

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
Fixed-rate, term ≤ 20 years	6%	12%	25%^	35%^
Fixed-rated, term > 20 years All ARMs	6%* + MI LLPA	12%* + MI LLPA	16%* + MI LLPA	18%* + MI LLPA
Fixed-rated, term > 20 years All ARMs	12%^	25%^	30%^	35%^
HomeReady mortgages: Fixed-rate, term ≤ 20 years	6%	12%	16%* + MI LLPA	18%* + MI LLPA
HomeReady mortgages: Fixed-rate, term ≤ 20 years	6%	12%	25%^	25%^
HomeReady mortgages: Fixed-rate, term > 20 years All ARMs	6%* + MI LLPA	12%* + MI LLPA	16%* + MI LLPA	18%* + MI LLPA
HomeReady mortgages: Fixed-rate, term > 20 years All ARMs	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
Fixed-rate, ARM, any term	12%^	25%^	30%^
HomeReady mortgages	6%* + MI LLPA	12%* + MI LLPA	16%* + MI LLPA
HomeReady mortgages	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 (12/19/2017).
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 (11/10/2014), for additional information about mortgage insurance coverage for financed mortgage insurance transactions.

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