Conventional Mortgage Insurance vs. FHA


With the recent expansion to Mortgage Insurance guidelines, PMI is becoming more attractive to homebuyers. Typically more affordable for borrowers who put down 10% or more, companies offering PMI are issuing policies on loans up to 97% LTV. They can often match FHA pricing for borrowers putting down as little as 5%.

The following examples are a PMI/FHA comparison using the loan parameters outlined below:

  • $200,000 Sales Price
  • 5.5% Interest Rate
  • 30% Standard Agency Coverage
  • 30-Year Fixed-Rate Loan Term
  • 95% LTV

Use the calculators below to determine how borrowers will fare using an FHA loan or conventional financing with Monthly MI.


Genworth and MGIC allow 100% gift funds to meet the minimum 3% borrower contribution required when the following criteria are met:

  • Maximum 41% DTI
  • Fixed-rate/ARM loan*
  • Primary residence
  • Not eligible in FL, AZ, NV or CA
    (Genworth only)
  • Minimum 740 FICO
  • 1-unit property
  • Soft seconds/subordinate financing not allowed

*ARM loans are only eligible when the initial adjustment period is 5 years or greater. 3/1 ARM loans are not eligible.

For more information, refer to Flagstar's Conventional Underwriting Guidelines and MI Company Parameter Matrix.


Homebuyer Privileges is a Genworth-exclusive program that provides you with a competitive advantage that can help boost your origination business and build customer loyalty. All borrowers, not just those with mortgage insurance, can benefit from your participation in this program all at no cost.

Originator Benefits

  • Training to leverage the program
  • Co-branded website
  • Co-branded and marketing flyer
  • Point-of-sale display
  • Promotional banner ads that drive customers to your website
  • Ability to add local partners to customize offerings in your market
  • Usage analysis detailing how many of your borrowers are taking advantage of the program
  • Program support from our ActionCenter ® representatives for you and your borrowers

Borrower Benefits

  • Shopper-friendly website that's easy to navigate
  • Offers valued over $3,500 with exclusive savings
  • Established national merchants including Lowe's, Bed Bath & Beyond, Sears Commercial Marketplace, North American Van Lines,, and Petsmart
  • Online fulfillment capability and in-store offers that are quick to access and some that can be used more
  • Savings of 5-20% off on the following brands: Club Furniture,, Rugs Done Right, UBoxes, Allied Van Lines; many include free shipping

Program Participation

It’s easy to sign-up and begin taking advantage of the Homebuyer Privileges program. Sign-up for a 30-day trial offer or contact your Genworth representative to help you complete the simple, 4-step sign-up process.

Program Resources: