Sentences with phrase «defaults on that conventional loan»

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This insurance, which is known as private mortgage insurance (PMI) for a conventional loan and a mortgage insurance premium (MIP) for an FHA loan, protects the lender in the event that you default on your loan.

Private mortgage insurance (PMI): Insurance against default issued by a private company on conventional mortgage loans.

If you pay any less than 20 % on a conventional loan, you'll have to cough up private mortgage insurance, an extra monthly fee paid to mitigate the risk that you might default on your loan.

This theory, based on the assertion that home buyers with little personal investment in their homes stand to default on home loans at a higher rate than those who've made the 10 % to 20 % down payment plus closing costs required for conventional mortgages.

Unlike conventional home loans, FHA loans are government - backed, which protects lenders against defaults, making it possible to for them to offer prospective borrowers more competitive interest rates on traditionally more risky loans.

This insurance, which is known as private mortgage insurance (PMI) for a conventional loan and a mortgage insurance premium (MIP) for an FHA loan, protects the lender in the event that you default on your loan.

FHA mortgage insurance also encourages lenders to make loans to otherwise credit worthy projects and borrowers that might not be able to meet underwriting requirements that are conventional, protecting the lender against loan default on mortgages for properties that meet certain minimum requirements — including single - family, manufactured homes, and multifamily properties, and some health - related facilities.

MGIC insures mortgage lenders against defaults on conventional mortgage loans made for greater than 80 % loan - to - value (LTV).

FHA mortgage insurance also encourages lenders to make loans to otherwise credit worthy projects and borrowers that might not be able to meet underwriting requirements that are conventional, protecting the lender against loan default on mortgages for properties that meet certain minimum requirements — including single - family, manufactured homes, some health - related facilities, and multifamily properties.

Just like a conventional home mortgage loan, if the homeowner defaults on the loan, or doesn't comply with the terms, the borrower may face foreclosure.

This insurance, which is known as private mortgage insurance (PMI) for a conventional loan and a mortgage insurance premium (MIP) for an FHA loan, protects the lender in the event that you default on your loan.

Instead, the agency guarantees repayment to lenders if a borrower defaults, so that the lenders know they won't lose money on the deal, thus allowing them to offer competitive mortgage rates on loans that are easier to qualify for than conventional home loans.