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Mortgage insurance coverage requirements & exposure

Fannie Mae’s HomeReady® and Freddie Mac’s Home Possible® coverage requirements differ from standard Agency requirements.

Agency coverage requirements

Base LTV Fannie Mae Standard Coverage Freddie Mac Standard Coverage HomeReady and Home Possible Coverage HFA Charter Coverage
  > 20 Years ≤ 20 Years > 20 Years ≤ 20 Years > 20 Years ≤ 20 Years  
97% to 95.01% 35% 35% N/A N/A 25% 25% 18%
95% to 90.01% 30% 25% 30% 25% 25% 25% 16%
90% to 85.01% 25% 12% 25% 12% 25% 12% 12%
85% and under 12% 6% 12% 6% 12% 6% 6%

Notes

Use the > 20 Years columns for ARMs and manufactured homes coverage requirements. Refer to the respective Agency guides for coverage requirements on manufactured homes. These coverage requirements are from Fannie Mae's and Freddie Mac's Seller Guides, subject to change. While we try to keep this information current, we do not warrant the accuracy or completeness of these requirements.

In addition, loans processed through Agency automated underwriting systems and specific Agency programs may have different coverage requirements. Therefore, the Agency requirements listed may be outdated or inapplicable; do not rely on them to determine current Agency coverage requirements.

HomeReady® is a Fannie Mae registered service mark. Home Possible® and Home Possible Advantage® are Freddie Mac registered service marks.

Exposure

“Exposure” is a term that describes the risks assumed by the lender/investor after considering the borrower’s down payment and mortgage insurance coverage.

LTV Coverage Exposure

 97%
-95.01%

 35%
30
28
26
25
20
18

64%
68
70
72
73
78
80

 95%
-90.01%

35
30
27
25
22
20
18
16

62
67
70
72
75
76
78
80

 90%
-85.01%

35
32
30
25
22
20
17
12

59
62
63
68
71
72
75
80

 85%
& Below

35
30
25
22
17
12
6

56
60
64
67
71
75
80