July 12--PROVIDENCE, R.I.-- Rhode Island Housing has begun writing some loans without requiring borrowers to buy mortgage insurance, a saving that the agency says can make the difference for families wanting a home of their own.

The program could produce between 150 and 500 loans, said Richard Godfrey, the agency's executive director. The big range stems from the unpredictability of the real estate market, he said.

Removing the mortgage-insurance requirement, he said, is the element that makes the program work for some borrowers.

"One hundred sixty dollars a month made the difference between them buying a home and not buying a home," Godfrey said.

The agency will cover the risk of default for the first six months, he said, with Fannie Mae, the government-sponsored home loan agency, picking up the risk after that.

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