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Why Private MI over FHA

Why Private MI over FHA

Experience the conventional wisdom that comes with National MI. Below are examples of the monthly payment differences per $100,000 financed with National MI Conventional vs. FHA.

Lower monthly payments

For those borrowers with good FICO® scores, National MI can still deliver lower monthly payments over an FHA loan.
We also offer a wider range of payment options than FHA, including monthly or single premium options, paid by the lender or borrower.

30Y MORTGAGES:

Conventional with Mortgage Insurance vs FHA Monthly Savings ($) with Signature BPMI Monthly
LTV
CREDIT SCORE 85% 90% 95% 97%
800+ $37 $28 $19 $4
780-799 $37 $28 $19 $4
760-779 $37 $28 $19 $4
740-759 $36 $19 $4 $13
720-739 $34 $11 $8 $29
700-719 $23 $4 $27 $61
National MI FHA Monthly Saving per $100k Financed
Assumptions:
  • FHA-insured loans assume 4.00% interest rate.
  • Conventional loans assume 4.25% base interest rate plus impact of Loan Level Price Adjustment (LLPA), which vary by loan-to-value and credit score.

No upfront payment required

With FHA, upfront payment is folded into the loan amount, chipping away at a borrower’s equity.

Cancellable at least 6 years sooner than FHA

Cancellation Comparisons:

LTV National MI FHA
> 90% LTV 78% LTV (average 7-10 year term) Not cancellable
≤ 90% LTV 78% LTV (average 5-7 year term) Cancellable after 11 years

It’s not all about monthly payments, it’s about costs

The true cost of mortgage insurance for a borrower with an FHA loan can really add up and may not be their best fit in the long term.

Less cash to close

We insure loans with just 3% down, while FHA requires a minimum 3.5% down payment. The time it takes for a borrower to save the additional funds could delay home ownership.

We provide a faster path to closing more loans

  • No need for FHA case numbers
  • No need for special Direct Endorsement (DE) underwriters
  • No need for approved appraisers
  • No burdensome extra paperwork or package preparation