When Is PMI or FHA Mortgage Insurance Required, and How Do I Remove It?
On a conventional loan, private mortgage insurance (PMI) usually applies when you put less than 20% down. You can ask to drop it at 80% of the home's original value, and it ends automatically at 78% if you're current. FHA mortgage insurance (MIP) works differently: on most newer FHA loans with less than 10% down, it lasts for the life of the loan unless you refinance or pay it off.
Last updated September 29, 2026What triggers PMI on a conventional loan?
PMI protects the lender, not you, when you borrow more than 80% of the home's value on a conventional loan. Put 20% down and you avoid it. What it costs depends on your credit score, your down payment and the loan, and your Loan Estimate shows the monthly amount.
How do I get PMI removed?
The federal Homeowners Protection Act gives you two paths:
- Ask for it: once your balance reaches 80% of the home's original value, you can request cancellation in writing. You need a good payment history, and the servicer can require that there are no other liens on the home and that its value hasn't dropped.
- Automatic: the servicer has to end PMI when your balance is scheduled to hit 78% of the original value, as long as you're current on payments.
How is FHA mortgage insurance different?
FHA loans charge mortgage insurance whatever your equity, and how long it lasts depends on your down payment and when your FHA case number was assigned:
- Case number on or after June 3, 2013, less than 10% down: MIP lasts for the life of the loan. The usual way out is refinancing into a conventional loan once you have enough equity.
- Case number on or after June 3, 2013, 10% or more down: MIP ends after 11 years.
- Case number before June 3, 2013: older rules apply. Some of these loans cancel at 78% loan-to-value, and some older ones never cancel, so check your loan documents.
If you're thinking about refinancing just to drop MIP, compare the closing costs with what you'd save each month, and figure out how long it would take to break even.
It depends on your situation:
- Conventional loan, less than 20% down: PMI ends automatically around 78%, or on request at 80% with a good payment history.
- Newer FHA loan, less than 10% down: plan on MIP for the life of the loan unless you refinance.
- Newer FHA loan, 10% or more down: MIP drops off after 11 years.
- FHA loan from before June 3, 2013: check your documents for the rule that applies.
| Conventional | Under 20% |
|---|---|
| Conventional | Under 20% |
| FHA, case number June 3, 2013 or later | Under 10% |
| FHA, case number June 3, 2013 or later | 10% or more |
| FHA, case number before June 3, 2013 | Varies |
Related questions
- what's the Difference Between an FHA Loan and a Conventional Loan
- what down-payment assistance and first-time-homebuyer programs exist, and how do they work
- do I Still Qualify as a First-Time Homebuyer If I Haven't Owned a Home in the Last 3 Years
- what Is a DSCR Loan, and How Does It Let You Qualify for an Investment Property Without Proving Personal Income
- minimum credit score to qualify
Sources
- https://files.consumerfinance.gov/f/documents/102012_cfpb_homeowners-protection-act-hpa-pmi-cancellation-act_procedures.pdf
- https://yourhome.fanniemae.com/buy/private-mortgage-insurance
- https://www.bankrate.com/mortgages/remove-fha-mortgage-insurance
- https://www.rocketmortgage.com/learn/fha-mortgage-insurance-removal
Sourced from licensed loan officers and brokers in the FreeRateUpdate network.
Educational information only, not individualized financial or legal advice. Program details and rates change; verify current terms with a licensed loan officer before making a decision.