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Some buyers are able to make a significant down payment on a home, but for the majority, hitting that targeted 20 percent isn’t realistic. Fortunately, mortgage insurance makes it possible for those who can’t afford the “standard” down payment to still fulfill their homeownership dreams.

Here’s a little more about what it is, how it works, and when it’s required.

What is mortgage insurance?

When you think of insurance regarding a home, homeowners insurance likely comes to mind. However, homeowners insurance and mortgage insurance are quite different.

Homeowners insurance provides financial protection for your home and personal belongings from damage or theft. While it isn’t legally required, mortgage lenders typically