Private Mortgage Insurance (PMI) costs homeowners $100 to $300+ monthly on conventional loans. Thanks to strong Las Vegas real estate appreciation, many borrowers qualify for immediate PMI cancellation.
1. Homeowners Protection Act of 1998 (HPA) Rules
| PMI Removal Method | LTV Threshold Required | Appraisal / Documentation | Loan Seasoning |
|---|---|---|---|
| Borrower-Requested (Original Value) | 80.00% of Original Purchase Price | Good payment history (no 30-day lates in 12 mo) | Based on amortization schedule |
| Borrower-Requested (New Market Value) | 75.00% LTV (2-5 yrs) / 80.00% LTV (5+ yrs) | Lender-ordered BPO or Full Interior Appraisal | 2 Years minimum seasoning |
| Substantial Home Improvements | 80.00% of New Improved Market Value | Documented permits, invoices & new appraisal | Zero seasoning required |
| Automatic Lender Cancellation | 78.00% of Original Purchase Value | Automatic by servicer law | Date scheduled in initial disclosure |