New Report Finds Private Mortgage Insurance is
a Key Resource for Low Down Payment Buyers
WASHINGTON, July 30,
2024 /PRNewswire/ -- In the midst of ongoing housing
market challenges, characterized by high interest rates, high home
prices, and constrained inventory, a new report from U.S.
Mortgage Insurers (USMI) shows that first-time and low down payment
borrowers across the country continued to purchase homes with low
down payment mortgages backed by private mortgage insurance. Nearly
800,000 Americans used private mortgage insurance to purchase a
home in 2023, and 64% of them were first-time buyers. This new USMI
data on low down payment and first-time borrowers provides some
silver lining insights within the current residential real estate
market.
"Private mortgage insurance continues to help buyers qualify for
financing and become homeowners with down payments as low as 3%,
and remains one of the most important tools available to first-time
and low- and moderate-income buyers in all market cycles," said
Seth Appleton, USMI president.
"Without private mortgage insurance, far too many buyers would
remain on the sidelines instead of building intergenerational
wealth and working towards the American Dream of
homeownership."
USMI's report found in 2023:
- Approximately 800,000 people became homeowners
using low down payment mortgages backed by private mortgage
insurance.
- 64% of purchasers with private mortgage insurance
were first-time homebuyers.
- First-time buyers' share of the private mortgage insurance
market increased 7% from 2020 through 2023.
- $346,817 was the
average loan amount for a home purchased with private mortgage
insurance.
- Saving for a 20% down payment could take the average
potential homebuyer 27 years — three times longer
than the time to save for a 5% down payment that's often used with
private mortgage insurance.
- The total value of mortgage originations supported by private
mortgage insurance was approximately $283
billion.
- The industry insured nearly $1.6
trillion of mortgages, including $1.4 trillion of mortgages backed by Fannie Mae
and Freddie Mac.
Click here for the complete report and
fact sheets.
USMI is dedicated to a housing finance system backed by
private capital that enables access to housing finance for
borrowers while protecting taxpayers. Mortgage insurance offers an
effective way to make mortgage credit available to more people.
USMI is ready to help build the future of homeownership. Learn more
at www.usmi.org.
Media Contact: Justin
Higgins
media@usmi.org
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SOURCE U.S. Mortgage Insurers