PRIVATE MORTGAGE INSURANCE (PMI) CANCELATION

Fannie/Freddie guidelines for loans with Note dates after July 29, 1999

BORROWER-REQUESTED CANCELATION

PROPERTY TYPE BASED ON ORIGINAL VALUE BASED ON CURRENT VALUE
1-Unit Primary or 2nd home
  • LTV to be 80% or less
  • No 30-day lates on mortgage in prior 12-months
  • No 60-day lates on mortgage in prior 24-months
  • No minimum seasoning required
  • LTV must be 80% or less if > 5-yrs from Note date
  • LTV must be 75% or less if > 2-yrs & <5yrs from Note date

Value increase due to substantial improvements

  • LTV must be 75% with no minimum seasoning-Fannie
  • LTV must be 80% with 2-yr minimum seasoning – Fannie
  • LTV must be 80% with no minimum seasoning – Freddie
2-4 Unit Primary or1-4 unit Investment
  • LTV must be 70%or less – Fannie
  • LTV must be 65% or less – Freddie
  • No 30-day lates on mortgage in prior 12-months
  • No 60-day lates on mortgage in prior 24-months
  • No minimum seasoning required
  • LTV must be 70% or less with no minimum seasoning – Fannie
  • LTV must be 65% or less with 2-yrs minimum seasoning from Note – Freddie

Value increase due to substantial improvements

  • No special provisions – Fannie
  • LTV must be 65% or less with d>
 AUTO CANCELATION
1-Unit Primary or 2nd home
  • Automatically canceled at whichever point occurs 1st
    • Date loan is scheduled to reach 78% LTV
    • Amortization period midpoint date of loan
  • All payments due must be current
2-4 Unit Primary or1-4 Unit Investment
  • Automatically canceled at amortization period midpoint of loan – Fannie
  • All payments due must be current – Fannie
  • Not eligible for automatic cancellation – Freddie


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