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Why Private MI over FHA

Why Private MI over FHA

Identify Loan Limit Comparison at a Glance

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.

Borrower-Paid Monthly MI (BPMI)

Conventional Loan with National MI Rates vs. FHA
LTV
CREDIT SCORE 85% 90% 95% 97%
760 +
740 - 759
720 - 739
700 - 719
680 - 699
660 - 679
640 - 659

Lower Monthly Payment:
National MI Rates FHA
Assumptions:
  • Premium rates assume a 30 year fixed rate, primary residence, $400,000 purchase price, 2 borrowers, not self-employed, 760 FICO®. Premium rates are as of 2/24/2023, are for illustrative purposes, and are subject to change.
  • FHA premiums are based on FHA rates effective 3/20/2023. Please visit www.FHA.gov for further details.
    FICO® is a registered trademark of Fair Isaac Corporation.

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

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