Press Release: Homeownership Supported by Private Mortgage Insurance at the National and State Levels

June 28, 2023

In 2022, the industry helped over 1 million low down payment borrowers secure mortgage financing. Texas, Florida, California, Illinois, and Ohio ranked as the top states for mortgage financing with private MI.

WASHINGTON — U.S. Mortgage Insurers (USMI), the association representing the nation’s leading private mortgage insurance (MI) companies, today released its annual report on mortgage financing supported by private MI at the national and state levels. The report finds that the industry has helped more than 38 million low down payment borrowers over its 66-year history to secure mortgage financing, including over 1 million in 2022, according to data from the government-sponsored enterprises (GSEs), Fannie Mae and Freddie Mac. Meanwhile, the report finds that saving for a 20% down payment could take potential homebuyers 35 years — almost three times longer than to save for a 5% down payment. Texas, Florida, California, Illinois, and Ohio ranked as the top five states for mortgage financing with private MI in 2022.

“Access to affordable and sustainable mortgage financing is vital, as potential homebuyers contend with higher interest rates, elevated home prices, and constrained inventory in many markets,” said Seth Appleton, President of USMI. “Private MI has enabled first-time and low- to moderate-income borrowers to secure affordable mortgage financing since 1957 while protecting taxpayers from mortgage credit risk. Thanks to private MI, more than 1 million borrowers were able to purchase a home or refinance a loan in 2022.”

Private MI facilitates access to sustainable and affordable mortgage finance credit for millions of people who put less than 20% down on a home loan. With private MI, potential homebuyers can put down as little as 3%. According to research from Fannie Mae, private MI ranks among the lowest costs associated with homeownership, with total private MI payments representing 0.5% of lifetime homeownership costs for the average purchase borrower, plus borrow-paid MI can be canceled after a period of time.

The latest USMI report examines the number of borrowers served, the percentage of borrowers who were first-time buyers, average loan amounts, and average FICO credit scores. USMI also calculates the number of years to save for a 5% versus 20% down payment for each state plus the District of Columbia.

Key findings from the report include:

  • It could take 35 years on average for a household earning the national median income of $70,784 to save 20% (plus closing costs), for a $392,800 single-family home, the national median sales price.
  • The wait time decreases by 66% with a 5% down payment mortgage.
  • In 2022, the number of homebuyers who qualified for a mortgage because of private MI was over 1 million.
  • Nearly 62% of purchase mortgages went to first-time buyers, and nearly 35% had annual incomes below $75,000. The average loan amount purchased or refinanced with private MI was $341,716.
  • The private MI industry supported approximately $402 billion in mortgage originations in 2022. Approximately 97% of mortgages were purchase loans, resulting in nearly $1.5 trillion in outstanding mortgages with active private MI coverage at year-end.

The below table shows the top five states where borrowers used private MI to purchase or refinance homes in 2022.


State Number of Borrowers Helped with Private MI First-Time Homebuyers
Texas 99,925 62%
Florida 76,451 57%
California 67,003 72%
Illinois 48,168 67%
Ohio 40,515 62%


Private MI provides protection against mortgage credit risk and is structured to stand in front of default-related losses that would otherwise be borne by the GSEs or taxpayers in the conventional mortgage market. As of the end of 2022, the industry insured over $1.5 trillion of mortgages, including $1.3 trillion of mortgages backed by the GSEs. Private MI has proven to be a reliable method for shielding the GSEs from losses, having paid nearly $60 billion in claims since the 2008 financial crisis and housing market downturn.

USMI worked closely with federal policymakers, industry groups, and consumer organizations to support and advocate for low down payment homebuyers and homeowners throughout 2022. The organization sent letters to the Senate Finance Committee and House Ways and Means Committee in support of bipartisan legislative initiatives to make permanent and expand eligibility of homeowners’ ability to deduct MI premiums from federal income taxes; submitted a comment letter to the Federal Housing Finance Agency’s (FHFA) proposed “Strategic Plan for Fiscal Years 2022-2026;” expressed support for efforts to remove barriers to homeownership, increase access and affordability, and promote sustainable homeownership for minority homebuyers; and supported FHFA’s ongoing review of the GSEs’ pricing frameworks, particularly the appropriateness of upfront fees on loans with private MI risk protection; among many other actions it took in support of first-time, minority, and low- to moderate-income homebuyers.

The complete report is available here, along with fact sheets for all 50 states and the District of Columbia.


U.S. Mortgage Insurers (USMI) is dedicated to a housing finance system backed by private capital that enables access to housing finance for borrowers while protecting taxpayers. Mortgage insurance offers an effective way to make mortgage credit available to more people. USMI is ready to help build the future of homeownership. Learn more at