Split premium mortgage insurance (MI) options may be good for a borrower who wants to reduce the monthly MI premium in order to qualify for a larger loan amount.

It offers ultimate flexibility because the cost of MI can be divided into a single, upfront premium payment and a lower monthly payment. The upfront portion can be paid several ways, including by a third party (e.g., seller, builder, lender) or financed into a borrower’s mortgage loan with the remainder of the premium folded into the homebuyer’s monthly mortgage.

This MI option is available as refundable or non-refundable. For homebuyers who chose refundable split premium MI, a partial refund may occur depending on the amount of time the coverage was in place. For homebuyers with non-refundable split premium MI, a partial refund is also possible if it is canceled under the Homeowners Protection Act of 1998 (HPA). Read Removing PMI to learn more. 

Essent offers standard and portfolio BPMI programs to its lenders. Contact your Essent account manager to discuss your needs and qualifying criteria.

Refer to Sections 10.0 and 11.0 of the Essent Client Services Guide for information regarding cancellation of MI coverage and refunds of premium depending on the Premium/Product Plan selected and Source of Premium Payment