Homeowners insurance pays for losses and damage to your property if something
unexpected happens, like a fire or burglary. Your homeowners insurance may also cover
the contents of your home and provide personal liability coverage. Standard homeowners
insurance doesn’t cover damage from earthquakes or floods, but it may be possible to add
Homeowners insurance also protects your lender’s financial interest in the property. This is
why lenders require proof of homeowners insurance.
Choosing your insurance provider is up to you, as long as the provider is licensed and
authorized to do business in your state, and the policy meets the property insurance
requirements for your loan.
Private Mortgage Insurance, or PMI, is a required insurance premium paid to insure the
mortgage when the down payment is less than 20% of the purchase price. Mortgage
insurance usually requires an initial premium payment and may require an additional
monthly premium which is paid as part of your escrow payment. The premium protects the
lender against loss in the event of default or foreclosure of the mortgage.
PMI Waiver Policy
In accordance with the Home Owner’s Protection Act of 1998, the following criteria has been
established for Private Mortgage Insurance waiver for owner-occupied residential
Your current loan-to-value ratios must be equal to or less than 80%
based on the lower of the original sale price or the original
appraised value (60% for a multi-family dwelling). Only Maine State
Housing Authority approved appraisers will be accepted. The cost
of the appraisal will be the borrower’s responsibility. A list can be
obtained by contacting Customer Service at 844-694-5193.