New American Funding and Alterra Home Loans have selected Radian Group as the preferred private mortgage insurance providers for their Your Path loan program.

Radian will provided mortgage insurance against default-related losses for borrowers who receive loans through the program and cannot meet a 20% down payment when purchasing a home. Additionally, Radian will work with Alterra and New American to educate consumers and to provide training for industry professionals.

"We're excited to be working with Radian on this program because it means we will be able to provide a greater pathway to homeownership for underserved borrowers," New American President Patty Arvielo said in a news release Monday.

Announced in September, the Your Path program uses Freddie Mac's low-down-payment Home Possible mortgages in an effort to expand affordable homeownership opportunities and to meet the needs of a wide array of borrowers.