How do I remove PMI from a conventional loan?
Two main paths: 1) automatic cancellation at 78% LTV based on the original loan schedule; 2) borrower-requested cancellation at 80% LTV based on either original value or current appraised value. A new appraisal showing 80%+ equity (commonly after 2-5 years) can accelerate removal. Subject to servicer rules.
What this actually means.
Federal Homeowners Protection Act (HPA) requires automatic PMI termination at 78% LTV based on the original amortization schedule, provided the loan is current. Borrower-requested cancellation is available at 80% LTV — by paying down principal, by improved property value (appraisal), or by some combination. The servicer reviews the request and typically requires no late payments in the prior 12 months. Lender-paid PMI (LPMI) cannot be canceled. Subject to servicer policy and HPA.
What this looks like on a real file.
Where this can move.
Credit score, LTV, coverage percentage, occupancy, and PMI provider can change cost. PMI removal is governed by HPA and servicer policy.
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More conventional questions on PMI.
Educational only. Conventional loan guidelines, lender overlays, rates, fees, PMI, LLPAs, and underwriting requirements can change. Final eligibility depends on full underwriting review. Mortgage Expert, Inc. is not affiliated with Fannie Mae, Freddie Mac, FHFA, or any government agency.