Americans who have a down payment of around 20 percent or less might have to get home loan insurance to qualify for the loan. However, some lenders do not discuss what this is, and some debtors leave since they do not think they should buy home loan insurance.
Home loan insurance provides lenders with an assurance if the debtor defaults. It was introduced to enable those who did not have the standard 20 percent deposit in money however still wished to purchase a home. Lenders desired the security of knowing that if the debtor defaulted, they would at least have 20 percent of the home mortgage.
CHECK THIS OUT FOR MORE INFO