Less Down, More Deals: How Mortgage Insurance Opens Doors for Your Bank

Hey there, community bankers—are you saying “no” to borrowers who need loans with less than 20% down? If so, you might be missing out on some great opportunities. Mortgage Insurance (MI) could be the tool that helps you say “yes” more often and grow your business.

Why MI Deserves a Spot in Your Lending Toolbox

MI makes homeownership more accessible by allowing borrowers to put down less than 20%. That means you can help folks who don’t have a big nest egg saved up—but are otherwise ready to buy a home. And let’s be honest, many borrowers don’t even realize they don’t need 20% down. That’s where you come in.

What’s in It for Your Bank?

Offering MI-backed loans can help you:

Real-Life Scenarios Where MI Shines

Let’s say a borrower has 10% saved but thinks they need 20%. With MI, they can move forward with just 3% down. That means they start building equity sooner—thanks to home appreciation—instead of waiting years to save more.

Or maybe the appraisal comes in lower than expected. MI can help you keep the deal alive by allowing a higher loan-to-value ratio.

Even borrowers who can afford 20% down might choose to put down less and use MI—freeing up cash for renovations, emergencies, or other investments.

Don’t Let Business Walk Out the Door

If you’re not offering MI, you could be losing borrowers to banks that do. MI helps you say “yes” more often, grow your loan volume, and strengthen your relationships with clients.

Ready to get started? Give Bankers’ Bank a call. We’ll help you set up a program that includes MI-backed loans and positions your bank for growth.