Fannie Mae Selling Guide B7-1-02 — Mortgage Insurance Coverage Requirements
Fannie Mae Selling Guide B7-1-02 — Mortgage Insurance Coverage Requirements.
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Verbatim provisions from Fannie Mae Selling Guide B7-1-02 — Mortgage Insurance Coverage Requirements — each quote is a verified substring of the regulator-published source snapshot, not retyped. Quoted for reference; this is not legal advice. The operational layer (P&P updates, prompts) lives in the regulation update kits.
Fannie Mae Selling Guide B7-1-02 — Mortgage Insurance Coverage Requirements
B7-1-02, Mortgage Insurance Coverage Requirements (08/07/2019) Introduction This topic contains information on mortgage insurance coverage requirements for first-lien mortgage loans. Mortgage Insurance Coverage Requirements Mortgage Insurance Coverage Requirements The table below provides the mortgage insurance coverage requirements for first–lien mortgages. For certain transactions, Fannie Mae offers two mortgage insurance coverage level options: standard coverage for the transaction type (noted with ^) and minimum coverage (noted with *) with corresponding LLPAs. Lenders who choose less than standard coverage (but no lower than minimum coverage) will be assessed an LLPA based on the LTV ratio and representative credit score for the mortgage loan. The minimum mortgage insurance LLPAs can be found in the Loan-Level Price Adjustment (LLPA) Matrix, and are in addition to any other LLPAs that may apply to the transaction. Mortgage Insurance Coverage Requirements LTV Range Transaction Type 80.01 – 85.00% 85.01-90.00% 90.01-95.00% 95.01-97.00% All property types (including MH Advantage) other than standard manufactured homes Fixed-rate, term ≤ 20 years 6% 12% 16%* + MI LLPA 18%* + MI LLPA 25%^ 35%^ Fixed-rate, term > 20 years All ARMs 6%* + MI LLPA 12%* + MI LLPA 16%* + MI LLPA 18%* + MI LLPA 12%^ 25%^ 30%^ 35%^ HomeReady mortgages: Fixed-rate, term ≤ 20 years 6% 12% 16%* + MI LLPA 18%* + MI LLPA 25%^ 25%^ Published May 6, 2026 836 Mortgage Insurance Coverage Requirements HomeReady mortgages: Fixed-rate, term > 20 years All ARMs 6%* + MI LLPA 12%* + MI LLPA 16%* + MI LLPA 18%* + MI LLPA 12%^ 25%^ 25%^ 25%^ Standard manufactured homes (not MH Advantage) Fixed-rate, ARM, any term 6%* + MI LLPA 12%* + MI LLPA 16%* + MI LLPA Not applicable 12%^ 25%^ 30%^ HomeReady mortgages 6%* + MI LLPA 12%* + MI LLPA 16%* + MI LLPA 12%^ 25%^ 25%^ The following additional requirements apply: Mortgage insurance requirements for HomeReady apply when HomeReady and HomeStyle Renovation are combined. The minimum levels (*with an LLPA) are eligible for HomeReady mortgages as indicated; however, the mortgage insurance LLPA will be assessed in all cases regardless of any LLPA limits. See B7-1-04, Financed Borrower-Purchased Mortgage Insurance, for additional information about mortgage insurance coverage for financed mortgage insurance transactions. Recent Related Announcements The table below provides references to recently issued Announcements that are related to this topic. Announcements Issue Date Announcement SEL-2019-07 August 07, 2019 Announcement SEL-2019-03 April 03, 2019 Published May 6, 2026 837