What is mortgage insurance and when is it required?

Mortgage insurance can help make homeownership more affordable by allowing qualified borrowers to purchase a home with a lower down payment or even no down payment at all. Instead of waiting to save 20% of a home's purchase price, borrowers may be able to buy a home sooner and keep more funds available for other expenses, such as moving costs, furnishings, or home improvements.

Mortgage insurance is typically required when the down payment is less than 20% of the home's purchase price. Requirements vary by loan program and individual circumstances.