About Mortgage Insurance
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.


Conventional with Mortgage Insurance vs FHA Monthly Savings ($) with Monthly Advantage BPMI
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
  • 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