This video tells you about it all. PMI stands for Private Mortgage Insurance or Insurer. These are privately-owned companies that provide mortgage insurance. They offer both standard and special affordable programs for home loan borrowers.
These companies provide guidelines to mortgage lenders that detail the types of home mortgage loans they will insure. Home lenders use these guidelines to determine borrower eligibility.
PMI’s usually have stricter qualifying ratios and larger down payment requirements than the FHA but their premiums are often lower and they insure home mortgage loans that exceed the FHA limit.