Lender 360 Mortgage Group expanded its product portfolio, introducing a "no-mortgage insurance" loan product to qualified borrowers purchasing a home.
The privately-owned mortgage banker, which focuses on third-party origination, says the product is for borrowers who put down less than 20% and allows them to escape the usual mortgage insurance costs.
In order to be approved for the product, borrowers must have a minimum 740 FICO score and a maximum loan-to-value ratio of 95%. In addition, the 'no MI option' is only available for purchase transactions on owner-occupied homes.
"This unique product provides borrowers with an opportunity to benefit from low interest rates without having to pay mortgage insurance," said Mark Greco, president and founder of 360 Mortgage.
He added, "Many lenders currently offer a NOMI-type product, but add on a pricing adjustment that increases the borrower’s interest rate and overall cost of owning a home."