What is +Plus Down Payment Protection?
+Plus Down Payment Protection protects up to the full amount of the homebuyer’s initial down payment, in the event of a loss when you sell in a down market. Here’s how it works:
Let's say you bought a home for $300,000 and put 10% down, or $30,000. The bank is protected through PMI insurance for the $270,000 mortgage. However, your hard-earned $30,000 down payment is not.
You buy a home for $300,000
Fast forward 5 years later and for some reason you need to sell your home but its value is only $280,000, or $20,000 less than you paid. With Down Payment Protection, you'd recoup the $20,000 you'd normally have lost.
5 years later you have to sell at a $20,000 loss