Mortgage Insurance Options

Mortgage Insurance (MI) is an insurance borrowers purchase to protect the lender in case of default. Unless you put 20% down on your mortgage you will need mortgage insurance. New Hampshire Housing has two ways of providing mortgage insurance, monthly or financed.

Monthly MI includes the mortgage insurance payment as part of your monthly mortgage payment made to New Hampshire Housing. Once you reach a 22% equity position, or if your house increases in value by 20%, monthly MI can be dropped.

Financed MI is an option you have with a New Hampshire Housing loan. By choosing "Financed MI", we allow a one-time premium amount to be financed into the New Hampshire Housing mortgage. When compared to "Monthly MI", by rolling the one-time premium into the loan, your monthly mortgage payment will be lower. If you pay your New Hampshire Housing loan off within the first five years of ownership, the upfront premium will be refunded at a prorated amount.

"ChoicElect" is a product that provides home buyers with mortgage payment protection in the event their income is interrupted by involuntary unemployment. The ChoicElect coverage pays a borrower’s full monthly mortgage payment including principal, interest, taxes, and insurance (PITI), up to $2,000 per month for as long as six months and remains in place for up to five years after the loan closes. ChoicElect is available at closing to borrowers receiving mortgage financing through New Hampshire Housing’s Single Family Mortgage Program with private mortgage insurance provided through AIG United Guaranty. AIG United Guaranty pays independently for the ChoicElect insurance so there is no extra cost to the lender or the borrower.

ChoicElect provides several important benefits.

Monthly mortgage payments of up to $2,000 for PITI continue to be paid for up to six months while a borrower is involuntarily unemployed, even if the loan is in default.
If the PITI exceeds $2,000, borrowers need only continue making payments for the difference while they are unemployed.
By preventing mortgage default, borrowers may avoid credit impairment.
Borrowers have time to find new employment or sell their home.

New Hampshire Housing loans can also be insured by other mortgage insurance providers such as Federal Housing Administration (FHA), Veterans Administration (VA), USDA - Rural Development (RD) and other private mortgage insurance companies.