U.S. Mortgage Insurers: About 800,000 Low Down Payment Buyers Used MI in 2024

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U.S. Mortgage Insurers, Washington, D.C., released its yearly report, finding that the private MI industry provided mortgage insurance to more than 800,000 low down payment borrowers last year.

That figure represents about $300 billion in mortgage originations, with about 96% of those for purchase loans

First-time buyers represented 65% of loans backed by private mortgage insurance in 2024, up a percentage point from 2023. About 35% went to families with incomes below $75,000.

The average loan amount with private mortgage insurance was $362,632 and the average borrower had a FICO credit score of 750.

At the end of 2024, there was nearly $1.6 trillion in outstanding mortgages with active private MI coverage, including more than $1.4 trillion of mortgages backed by the GSEs.  

The private MI industry reports that it has covered nearly $60 billion in claims for losses since the 2008 financial crisis.

Last year, Texas saw the most new homebuyers with private MI, at 67,033 loans backed by the product. Next was Florida at 49,181 loans, California at 43,285 loans, Illinois at 38,448 and Ohio at 36,472.

Locations that saw few mortgages covered by MI include Alaska, Wyoming, Vermont, Washington, D.C., and Hawaii.