PMI Removal Appraisals
Still Paying PMI?
If your home has gained value or you have paid down your conventional mortgage, you may have enough equity to ask your mortgage servicer about removing private mortgage insurance.
Start with your mortgage servicer. An appraisal does not automatically remove PMI, and your servicer may require that the valuation be ordered through its own process.
Why homeowners ask about PMI removal
Federal law gives many borrowers the right to request PMI cancellation when the loan balance reaches 80% of the home's original value, provided applicable requirements are met. Some conventional loan programs may also permit cancellation based on current value under separate rules.
Important: “20% equity” is a useful starting point—not a guarantee that your particular loan qualifies.
Start Here
How the PMI-removal process generally works
The most important first step is not ordering an appraisal—it is finding out exactly what your mortgage servicer requires.
Check your loan
Confirm that you are paying borrower-paid private mortgage insurance on a conventional mortgage.
Call your servicer
Ask whether you may request PMI cancellation and whether current market value can be considered.
Ask about valuation
Find out what type of valuation is required and, importantly, who must order it.
Order only if allowed
If your servicer permits an independent appraisal, contact Cornerstone Appraisal to discuss the property and assignment.
Loan & Property Eligibility
Which loans may benefit from a PMI-removal appraisal?
PMI is primarily associated with conventional mortgages. Government-backed loan programs use different insurance or guarantee structures.
Potentially eligible
- Conventional mortgages with borrower-paid PMI, subject to the loan investor's and servicer's cancellation requirements.
- Single-family homes with qualifying conventional financing.
- Manufactured homes with qualifying conventional financing and borrower-paid mortgage insurance, subject to investor, property, title, and servicer requirements.
- Loans where the servicer permits cancellation based on current market value.
- Loans approaching cancellation based on original value where the servicer requires evidence that value has not declined.
Different rules / generally not a PMI appraisal
- FHA loans: use Mortgage Insurance Premium (MIP), not conventional PMI. Current-value appreciation generally does not create the same PMI-cancellation path.
- VA loans: VA-backed loans do not require monthly PMI.
- USDA guaranteed loans: use guarantee/annual fees rather than conventional PMI.
- Lender-paid mortgage insurance: different rules apply; contact your servicer.
- Any loan where the servicer requires its own appraisal, BPO, automated valuation, or other designated valuation process.
| Loan / Property Type | PMI-removal appraisal? | What to know |
|---|---|---|
| Conventional — Single-Family | Possibly | The strongest candidate. Eligibility depends on LTV, seasoning, payment history, investor rules, and the servicer's required valuation process. |
| Conventional — Manufactured Home | Possibly | Conventional manufactured-home loans can have mortgage insurance. Confirm with the servicer that the loan and property qualify and that an independent appraisal is acceptable. |
| FHA | Generally no | FHA uses MIP. For many FHA loans with case numbers assigned on or after June 3, 2013, MIP lasts 11 years when original LTV was 90% or less and for the loan term when original LTV exceeded 90%. |
| VA | No conventional PMI | VA loans do not require monthly mortgage insurance; a one-time VA funding fee may apply instead. |
| USDA Guaranteed | No conventional PMI | USDA guaranteed loans use guarantee and annual fees rather than conventional PMI. |
What about manufactured homes?
Manufactured housing should not automatically be excluded. Conventional financing is available for qualifying manufactured homes, and mortgage insurance can be part of that financing. The key question is the loan: who owns or guarantees it, what mortgage insurance is being charged, and what cancellation rules the servicer applies. If you own a manufactured home and see a mortgage-insurance charge on your statement, call your servicer first and ask whether it is conventional borrower-paid MI and whether current value may be used for cancellation.
Equity & Current Value
Appreciation may matter—but the rules are loan-specific.
For Fannie Mae loans, borrower-requested termination based on current value generally requires a one-unit principal residence or second home to be at 75% LTV or less when the loan is between two and five years old, or 80% LTV or less after five years. Certain substantial borrower-made improvements can affect the seasoning requirement. Other investors and servicers may have different procedures.
Frequently Asked Questions
PMI removal questions
Can I just order an appraisal and send it to my lender?
Not necessarily. Some servicers or investors require the valuation to be ordered through their own system. Contact the servicer first and specifically ask whether an independently ordered appraisal will be accepted.
Does reaching 20% equity automatically remove PMI?
No. Federal law provides cancellation and automatic-termination rights based largely on the home's original value and scheduled loan balance, while some conventional investors also provide current-value cancellation options. The requirements are not identical.
What if I remodeled my home?
Substantial improvements may be relevant under some investor rules. Fannie Mae, for example, distinguishes value-adding renovations from ordinary maintenance when considering an exception to its normal seasoning requirement. Tell your servicer about major improvements when asking about PMI removal.
Can PMI be removed from a manufactured-home loan?
Potentially, if it is a qualifying conventional mortgage with borrower-paid mortgage insurance and the applicable investor and servicer rules permit cancellation. Manufactured housing by itself does not answer the question; the financing structure matters.
Will Cornerstone Appraisal guarantee that my PMI is removed?
No. The mortgage servicer—not the appraiser—makes the PMI cancellation decision. Cornerstone Appraisal can provide an independent opinion of market value when the servicer permits or requires an appraisal that you may obtain independently.
Free PMI Consultation
Not sure whether an appraisal could help?
Call or email before ordering. There is no charge for a brief consultation to discuss your loan type, when you purchased or refinanced, your approximate loan balance, the property type, and what your mortgage servicer has told you about PMI removal.
If an independent appraisal is not appropriate for your servicer's process, I would rather tell you that before you spend money on one.
Cornerstone Appraisal is an independent appraisal company and is not your lender, mortgage servicer, mortgage insurer, Fannie Mae, Freddie Mac, FHA, VA, or USDA. Eligibility and PMI cancellation are determined by the applicable loan owner/investor, mortgage insurer and servicer.
Helpful information to have ready
✓ Approximate purchase or refinance date✓ Current approximate loan balance✓ Loan type, if known✓ Property address✓ What your servicer said about PMI removalConsumer & Servicing Resources
Learn more from primary sources
This page is general educational information and is not legal, lending, or mortgage-servicing advice. Rules can change and individual loan terms vary. Primary resources used for this page include the Consumer Financial Protection Bureau's PMI cancellation guidance, Fannie Mae's current Servicing Guide, HUD/FHA mortgage-insurance guidance, Freddie Mac's Single-Family Guide, VA home-loan guidance, and USDA Rural Development materials.
CFPB — When can I remove PMI? · Fannie Mae — Termination of Conventional Mortgage Insurance · HUD/FHA — MIP duration · VA — Funding Fee & Mortgage Insurance