(Bloomberg) -- Radian Group Inc. will broaden somemortgage-insurance policies to provide relief when borrowers losetheir jobs, in a bid to stoke demand among homebuyers pressured bygovernment fees and tight access to credit.

The insurer will give the coverage to buyers putting down lessthan 5% of the price of their homes, according to Teresa Bazemore,president of Philadelphia-based Radian’s mortgage-insuranceunit.

Mortgage insurers cover losses when homeowners default andforeclosures fail to recoup costs. While Radian has benefited froma decline in claims costs tied to defaults, revenue hasn’t improvedas quickly. Would-be homebuyers have been thwarted by banks thatare reluctant to extend credit, and the U.S regulator for FannieMae and Freddie Mac last week left intact some fees tied to loansthey guarantee.

At Radian, “the idea was to try and get people more comfortablewith entering home ownership,” Bazemore said by phone Thursday.“There’s a myth in the marketplace that people need 20% down” to besafe buying a residence, she said.

Starting May 1, the new insurance policy will pay for as many assix months of payments on new mortgages, for up to $9,000, if theborrower is fired within the first two years of their mortgage, shesaid. Radian is buying the coverage from another insurer, whichBazemore wouldn’t name, and giving it to borrowers at banks thatjoin the program.

Radian is among mortgage insurers that were hobbled in thehousing market crash, and Chief Executive Officer S.A. Ibrahim isseeking to rebuild the company as home prices rebound. He reached adeal last year to acquire mortgage-services provider ClaytonHoldings.

The insurer climbed 1.5% to $18.38, extending its gain sinceDec. 31 to about 10% after rallying 18% in 2014 and doubling eachof the prior two years.

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