A wholesale mortgage lender operating out of California is now offering a mortgage insurance product that is paid by the lender.
On Monday, RightStart Mortgage announced that it has launched a new lender-paid mortgage insurance product that enables borrowers to avoid M.I. expense.
Mortgage insurance premiums are financed through premium pricing, according to the announcement from the Pasadena, Calif.-based company.
The product is only available on conforming loans secured by owner-occupied properties.
The maximum loan amount is $300,000, and the minimum FICO score is 750. Borrowers are required to make a 5 percent down payment. (after this story was published, a spokesman issued a statement indicating that there is no maximum home price or minimum FICO score)
RightStart President Buster Williams said in the announcement that the product helps lower monthly payments and debt-to-income ratios.
“Compared to an FHA loan, a $285,000 RightStart Wholesale LPMI loan can lower a borrower’s monthly payments by as much as $200, for a savings of more than $28,000 over 10 years,” the statement said.
Information about the product is online at www.RSMWholesale.com/LPMI.
