MGIC MI: Make it an Option
One-Time MI
One-Time MI features a single premium that can be paid up front by borrowers or financed into the loan amount. One-Time MI can also be paid by a third party, such as a builder or a seller.
When coverage is cancelled during the first 5 years, a pro-rated portion of the premium is refundable.
Borrowers with adjusted gross household income of $100,000 or less qualify for the maximum MI tax deduction.
Available on:
Full Doc
| Nonrestricted Markets | Restricted Markets | ||
|---|---|---|---|
| Maximum LTV | Minimum FICO | Maximum LTV | Minimum FICO |
| 97% | 680 | 95%* | 680 |
| 95% | 620 | ||
* Beginning August 4, 2008, Arizona, California, Florida, and Nevada maximum LTV will be 90%.
With MGIC One-Time MI, you can:
- Structure high-LTV loans
- Finance higher loan amounts
- Enhance your role as Trusted Advisor and differentiate yourself from your competition by:
- broadening the options you provide borrowers
- notifying borrowers when they may be able to cancel MI and possibly receive a refund
Which borrowers should consider MGIC One-Time MI as an option?
- those who want the lowest possible monthly payment and have cash to use at closing or who wish to finance the premium into the loan amount
- those purchasing a home in a buyer's market with motivated builders and sellers willing and able to foot the bill
- those who anticipate reducing their LTV — by paying down the principal balance or by their home's value appreciating because of home improvements or market conditions — to qualify for MI cancellation sooner
