August 13, 2026 Ohio Homebuyers 5th in Nation Using Private Mortgage Insurance in 2025, Saving an Average of $40,000 at Closing

August 13, 2026

WASHINGTON, DC -Ohio was fifth in the nation for homebuyers that used private mortgage insurance (MI) to purchase their homes in 2025, according to a new report released today from U.S. Mortgage Insurers (USMI). Over 36,000 Ohio households used private MI last year, with 67% of purchase loans going to first-time homebuyers, and Ohio was fifth in the nation for the fifth consecutive year in the number of borrowers who turned to private MI to purchase a home or refinance a loan with a down payment as low as 3%.

On average, Ohio borrowers using private MI saved an estimated $40,000 in cash needed at closing compared to saving up for a 20% down payment. This allowed thousands of Ohio households to purchase a home years sooner than would otherwise be possible. Nationally, more than 800,000 households became homeowners or refinanced a loan using private MI last year.

"Homeownership has been a cornerstone of the American Dream for 250 years, and private mortgage insurance puts that dream within reach for hundreds of thousands of households nationwide," said Seth Appleton, President of USMI. "This new report demonstrates the tremendous savings that private MI provides to Ohio families and underscores that it is a powerful financial tool that allows families to unlock homeownership years or even decades sooner than would otherwise be possible."

Ohio Trends
2025 data for Ohio showed that:

• It could take an Ohio household earning the state median income ($80,520) 17 years to save for a 20% down payment (plus closing costs) for a $271,500 single-family home, the median sales price in Ohio. With a 5% down payment, the wait time decreases by 11 years.
• $269,846 was the average loan amount for a home purchased with private MI in Ohio.
• 67% of purchasers in Ohio with private MI in 2025 were first-time homebuyers.
• For many Ohioans, the biggest hurdle in buying a home is the 20% down payment that many Americans mistakenly believe is required for mortgage approval.

"In 2025, private MI helped homebuyers across Ohio enter into homeownership with down payments as low as 3%," said Appleton. "Instead of delaying homeownership and waiting to save for a 20% cash down payment, more than 36,000 Ohioans were able to put down roots and start building equity sooner thanks to the help of low down payment mortgages backed by private MI."

Why Use Private Mortgage Insurance?

Private MI helps low down payment borrowers access affordable mortgage financing while protecting the GSEs, lenders, investors, and taxpayers against risk. Private MI enables a borrower to qualify for mortgage financing with a down payment as low as 3%. Borrower paid monthly private MI, the most commonly used form, is only a temporary cost for homebuyers, as it can be canceled or automatically terminates once the loan meets certain requirements.

Amassing a large cash down payment can be one of the biggest hurdles to homeownership, particularly for first-time buyers. Private MI allows borrowers - who are not able to put down 20% - to qualify for a conventional loan by insuring the lender against potential losses in the event the borrower is unable to repay the loan and there is not sufficient equity in the home to cover the amount owed. USMI's 2024 Homeownership Market Survey found that while homeownership is very important to survey respondents, only one-third of them were aware that it is possible to qualify for financing with only 3% or 5% down.

Beginning next tax season, private MI carries additional benefits for qualifying homeowner thanks to the Working Families Tax Cuts which reinstated and made permanent the deductibility of MI premiums for eligible homeowners. This action by Congress and President Trump means the return of a deduction that provides working class homeowners with meaningful tax relief without increasing risk in the housing finance system. USMI has long advocated for the reinstatement of this deduction, which was claimed more than 44 million times for tax years 2007-2021, for a collective $64.7 billion in deductions. In 2021, the last year this deduction was available, more than 25,220 qualifying Ohio homeowners claimed the deduction, receiving an average deduction of $1,641 per household. Additionally, the 2017 Tax Cuts & Jobs Act included cost savings that were passed on to low down payment homebuyers in the form of lower private MI premium rates.

Private Mortgage Insurance Protects Taxpayers

For nearly seven decades, private MI has served as the first layer of private capital protecting the housing finance system from unnecessary risk. Private MI is scalable and serves lenders of all sizes and business models, from the largest global institutions to the smallest community banks. It has also proven to be a reliable method for protecting the GSEs, lenders, investors, and taxpayers from losses, having paid $62 billion in claims since the 2008 financial crisis and housing market downturn. That's $62 billion covered by private capital rather than taxpayers and the federal government. The private MI industry's ability to employ risk-based pricing to granularly assess, price, and manage long-term mortgage credit risk also allows private MI companies to serve as a second set of eyes when it comes to managing risk in the system, providing further protection to the GSEs and taxpayers.

The complete report is available here, along with fact sheets for Ohio, the other 49 states, and the District of Columbia.

###

USMI is dedicated to a housing finance system backed by private capital that enables access to housing finance for borrowers while protecting taxpayers. Private mortgage insurance offers an effective way to make mortgage credit available to more people. USMI is ready to help build the future of homeownership. Learn more at www.usmi.org .