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Mortgage Insurance from MassHousing

Not all of MassHousing's mortgage programs require mortgage insurance—even with downpayments as low as 3%. But Mortgage Insurance from MassHousing is unlike what you might find elsewhere.

What is Mortgage Insurance?

Mortgage insurance (MI) is often required for homebuyers making downpayments of less than 20% of their home’s purchase price:

  • Lenders view borrowers making downpayments of less than 20% as greater credit risks
  • Mortgage insurance protects the lender's investment, which allows them to make the loan
  • Traditionally, the borrower pays for the cost of MI, which only protects the lender

MI options from MassHousing

Not all MassHousing loans require mortgage insurance. Those that do offer several options:

Borrower-Paid Mortgage Insurance

BPMI is similar to what you might find elsewhere on the market.

  • BPMI from MassHousing typically features MI premium rates equal to or lower than private mortgage insurance
  • On MassHousing loans, the MI coverage required is less than traditional, conventional loans, meaning a lower monthly MI payment for you
  • BPMI is best for borrowers who don’t plan to move or refinance for 15 to 20 years

Lender-Paid Mortgage Insurance

With LPMI, the cost of a life-of-loan mortgage insurance policy is paid for by the lender at closing.

  • The lender funds the LPMI premium by charging a slightly higher interest rate, eliminating the monthly MI premium for the borrower
  • LPMI is best for borrowers who expect to move, refinance or pay off their loan within the first 10 to 15 years

MI Plus

Regardless of which MI option you choose, all loans insured by MassHousing feature MI Plus, a unique borrower protection that helps pay your mortgage if you lose your job. MI Plus

  • Covers principal and interest payments for up to six months (up to $2,000/month)
  • Comes at no added cost on loans insured by MassHousing
  • May be used for any six months during the first 10 years of the loan

Which Option is Best?

Not sure which is the right option for you? Contact MassHousing at 888.843.6432 or find a participating lender near you to learn more.

Quick Links

Interest Rates

MassHousing rates change daily. Please contact a participating lender for the current MassHousing interest rate.

Request More Information

Still have questions about our products and services? Request more information.

Helpful Resources

 MI Plus Documents
Document  MIPlus Program Brochure

Still Have Questions?

A photo of MassHousing's Rich Petisce

Do you have questions about the homebuying process or about our products and programs for homebuyers? Ask Rich, MassHousing's resident mortgage and homebuying expert!

TEL: 888.843.6432 | Email

Online Homebuyer Counseling

Learn about MassHousing's online homebuyer education course, The Road Home.