source:
  type: guide
  id: fnma-sel-b7-1-02
  authority: Fannie Mae Selling Guide B7-1-02 — Mortgage Insurance Coverage Requirements
  description: Fannie Mae Selling Guide B7-1-02 — Mortgage Insurance Coverage Requirements.
  coverage_tier: operative
obligations:
- id: fnma-sel-b7-1-02-full
  canonical_id: fnma-sel-b7-1-02-full
  section: Fannie Mae Selling Guide B7-1-02 — Mortgage Insurance Coverage Requirements
  type: do
  tags:
  - regulator-direct
  - fnma
  - selling-guide
  - corpus-expansion
  - tier-operative
  primary_source:
    tier: 1
    authority: Fannie Mae Selling Guide B7-1-02 — Mortgage Insurance Coverage Requirements
    source_class: fnma-guide
    source_url: https://singlefamily.fanniemae.com/media/document/pdf/selling-guide
    snapshot_id: 5f7b8b79da595d76
    fetched_at: '2026-05-25T14:09:57Z'
    content_hash: sha256:98cf85a02861bbe84914a0e339b327c8fc131869a8a573882007bbeea60c5701
    paragraph_quote: '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'
  judgment: false
