• FHA Loan Center
  • How FHA Loans Work
  • FHA Loan Checklist
  • Common FHA Loan Questions
  • FHA Qualifications
  • Benefits of FHA Loans
  • Apply Online
• Rural Loan
• Construction Financing
• VA Loans
• Conventional Loans
• Investor Loans
• Second Mortgage Loans
• High Debt Ratio Loans
• Challenged Credit Loans
• Jumbo Loans
• 80/15/5
• MHDC
• HomePath
• FHA $100 HUD Repo
• FHA 203k
• Homestyle Renovation
• Lender Paid PMI

Lender Paid Private Mortgage Insurance

Lender Paid Mortgage Insurance or LPMI is a way to avoid paying traditional mortgage insurance on a conventional home loan. In return for a small increase to your interest rate, the lender will pay the mortgage insurance for you.Lender-paid mortgage insurance is a form of insurance that protects the lender in the event of default by the borrower. It is usually required on loans that carry higher-than-average risk.

This benefits you the borrower in several ways:

1. The payment on this type of loan is usually lower than a no PMI loan or traditional loan with Private Mortgage Insurance (PMI).
2. Generally you will be in a better tax situation due to the increase in interest paid.