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 & Freddie Mac HomeOne® Coverage | HomeReady & Home Possible Coverage | HFA Charter Coverage | ||
| > 20 years | ≤ 20 years | > 20 years | ≤ 20 years | ||
| 97% to 95.01% | 35% | 35% | 25% | 25% | 18% |
| 95% to 90.01% | 30% | 25% | 25% | 25% | 16% |
| 90% to 85.01% | 25% | 12% | 25% | 12% | 12% |
| 85% & below | 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 Therefore, the Agency requirements listed may be outdated or inapplicable; do not rely on them to determine current Agency coverage requirements.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 registered trademark of Fannie Mae. Home Possible® and HomeOne® are registered trademarks of Freddie Mac.
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% to 95.01%
| 35% 30 28 26 25 20 18 | 64% 68 70 72 73 78 80 |
| 95% to 90.01% | 35 30 27 25 22 20 18 16 | 62 67 70 72 75 76 78 80 |
| 90% to 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 |