What they are?
What is it?
Some loan programs offer lower mortgage insurance costs for a qualifying buyer.
How does it work?
- Lower MI reduces monthly payments without requiring a larger down payment
- PMI may be cancellable on conventional loans.
Where is it available?
Loan types available
Conventional HomeReady® / Home Possible®, VA (no MI), FHA (standard MIP).
Where available in Illinois
- Available through statewide and national programs
- Piggyback loans to reach 80% buyer required to bring 5% to 10% down
- PMI is discounted in HomeReady, if <= 80% AMI
- Home Possible offer reduced PMI
- Lender pays the insurance cost and builds it into the rate longer amortization
Key Qualifications
Qualification requirements
- Income limits depending on program
- Primary residence only
- Credit score and LTV requirements
