Getting rid of PMI on an FHA loan comes down to two facts about your mortgage: the date your FHA case number was assigned and how much you put down. If your case number was assigned on or after June 3, 2013, and you put less than 10% down, the annual mortgage insurance premium stays for the life of the loan, and refinancing into a conventional mortgage is your only way out. Borrowers who put 10% or more down have MIP drop off automatically after 11 years. Older FHA loans, with case numbers assigned before June 3, 2013, can shed MIP once the loan-to-value ratio hits 78% and other conditions are met.
Technically, FHA loans carry mortgage insurance premiums (MIP), not private mortgage insurance (PMI). The terms get used interchangeably, but the removal rules are FHA-specific, and that’s what matters here.
Figure Out Which Rules Apply to Your Loan
Before you do anything else, confirm two things: when your FHA case number was assigned, and your original loan-to-value ratio at closing. Those two data points decide every path available to you.
The case number assignment date is not the same as your closing date. Your lender pulls the case number from HUD’s system during the application process, sometimes weeks before you sign. You can find it on your original Closing Disclosure or HUD-1 Settlement Statement, or you can call your mortgage servicer and ask for the number and the date it was assigned. If you closed well before or well after June 3, 2013, the case number almost certainly falls on the same side of that line.
Your original LTV is the loan amount divided by the lesser of the purchase price or appraisal at closing. Less than 10% down means an LTV above 90%. Ten percent or more down puts you at 90% or below.
Pre-June 2013 Loans: Automatic Cancellation at 78% LTV
If your case number was assigned before June 3, 2013, and you closed on or after January 1, 2001, HUD cancels your annual MIP automatically when two conditions are met. Your loan-to-value ratio must reach 78% of the lesser of the original sales price or appraised value at origination, and you must have paid annual MIP for at least five years.1U.S. Department of Housing and Urban Development. How Long Is MIP Collected for a Loan Closed on or After January 1, 2001, With a Case Number Assigned Prior to June 3, 2013
The 78% calculation uses your original value, not current market value. If you bought for $250,000 and the home is now worth $350,000, HUD still measures your LTV against the $250,000 figure. Appreciation does not help you here.
Requesting Early Cancellation
If extra principal payments have pushed you to 78% ahead of your regular amortization schedule, you can request cancellation through your loan servicer rather than waiting for HUD’s automatic process. Two conditions apply: at least five years must have passed since origination (except for most 15-year loans), and you must not have been more than 30 days late on any payment in the previous 12 months.1U.S. Department of Housing and Urban Development. How Long Is MIP Collected for a Loan Closed on or After January 1, 2001, With a Case Number Assigned Prior to June 3, 2013
Fifteen-year FHA loans originated before June 3, 2013, generally get more favorable treatment. For most of these, HUD cancels MIP at 78% LTV regardless of how long you have been paying, so the five-year minimum often does not apply.
How to Make the Request
Check your most recent mortgage statement for your current principal balance. Divide that balance by the lesser of your original purchase price or appraised value from your Closing Disclosure. If the result is 0.78 or lower and at least five years have passed, you have grounds to ask.
Call your servicer and ask about their MIP removal process. Some have a form in their online portal; others accept a written request. If you mail a letter, send it certified with return receipt. Include your loan number, current principal balance, original property value, resulting LTV, and your request that MIP be canceled under HUD guidelines.
The servicer will verify your payment history and loan status. If everything is in order, expect a confirmation letter in 30 to 60 days. Check your next statement to confirm the charge is gone. If it still appears, call the servicer’s escrow department right away.
Post-June 2013 Loans With 10% or More Down: Wait 11 Years
If your case number was assigned on or after June 3, 2013, and your original LTV was 90% or below, annual MIP drops off automatically after 11 years of payments.2U.S. Department of Housing and Urban Development. How Long Is MIP Collected for Case Numbers Assigned on or After June 3, 2013
The 11-year clock runs no matter how much equity you build. Extra payments or a rising market do not accelerate it. You cannot request early removal under HUD rules. If you are within a few years of the 11-year mark, waiting is almost always cheaper than refinancing.
Post-June 2013 Loans With Less Than 10% Down: Refinance to Conventional
This is where most current FHA borrowers end up stuck. If your case number was assigned on or after June 3, 2013, and your original LTV was above 90%, annual MIP continues for the entire loan term. There is no automatic cancellation, no equity threshold that triggers removal, and no way to ask the servicer to end it early. MIP stays until you refinance, sell, or pay off the loan.2U.S. Department of Housing and Urban Development. How Long Is MIP Collected for Case Numbers Assigned on or After June 3, 2013
Refinancing into a conventional mortgage is the only realistic exit. The math works differently on a conventional loan because current home value counts, not just your original purchase price. If your home has appreciated, that built-up equity moves you toward the 20% threshold where mortgage insurance is no longer required.
Qualifying for Conventional
Conventional standards are tighter than FHA. Fannie Mae’s automated underwriting system no longer applies a hard minimum credit score as of November 2025, but it evaluates your full risk profile, and most lenders still enforce their own floor around 620.3Fannie Mae. Selling Guide Announcement SEL-2025-09 Higher scores produce meaningfully better pricing.
Your debt-to-income ratio matters too. Loans run through Fannie Mae’s automated system can go up to 50% DTI. Manually underwritten loans cap at 36%, with exceptions up to 45% possible with strong credit and reserves.4Fannie Mae. Debt-to-Income Ratios
The Appraisal Is Everything
A conventional lender orders a new appraisal based on current market conditions. A home purchased for $300,000 with 3.5% down that is now worth $375,000 has shifted from roughly 3.5% equity to over 20%, assuming some principal has also been paid down. That new value is what gets you out of mortgage insurance entirely.
Some refinances qualify for an appraisal waiver through Fannie Mae or Freddie Mac’s automated systems. Fannie Mae’s program covers primary residences valued under $1 million for certain refinance types, with LTVs up to 80% to 90% depending on the transaction.5Federal Housing Finance Agency Office of Inspector General. An Overview of Enterprise Appraisal Waivers Your lender’s system will tell you whether a waiver applies.
Running the Break-Even Math
Refinancing is not free. Total closing costs typically run from roughly $1,200 to $6,800, with a national median around $2,000, though costs vary by state. Divide total closing costs by your monthly MIP savings to find your break-even point. If you pay $140 per month in MIP and closing costs run $3,500, you break even in 25 months. Stay longer than that and the refinance pays for itself.
Interest rates complicate the picture. If current conventional rates sit above your existing FHA rate, a refinance could raise your total payment even without MIP. Compare the full new payment against your old payment minus MIP before committing.
If You Still Need PMI on the New Loan
Refinancing with less than 20% equity means your conventional loan will carry private mortgage insurance. Conventional PMI rates range from roughly 0.46% to 1.50% annually depending on your credit score, which can match or even exceed FHA MIP for borrowers with lower scores. The advantage is that conventional PMI has built-in exits. Under the Homeowners Protection Act, you can request cancellation once your balance reaches 80% of the original value, and your servicer must automatically terminate it when the balance reaches 78% on the scheduled amortization.6Office of the Law Revision Counsel. United States Code Title 12 Chapter 49 – Homeowners Protection That is a far better position than lifetime FHA MIP.
What an FHA Streamline Refinance Does and Doesn’t Do
An FHA streamline refinance replaces your existing FHA loan with a new one, often at a lower rate and with reduced paperwork. It typically does not require a new appraisal or income verification. But the new loan is still an FHA loan, so it carries its own MIP under current rules.7U.S. Department of Housing and Urban Development. Streamline Refinance Your Mortgage A streamline refinance does not get rid of mortgage insurance.
What it can do is lower your overall cost. For FHA loans endorsed on or after December 8, 2004, HUD offers a partial refund of the upfront premium if you refinance into another FHA loan within three years. The refund starts at 80% of the original upfront premium if you refinance within the first month, drops by 2% each month, and reaches 10% at month 36. After three years, there is no refund.8U.S. Department of Housing and Urban Development. FHA Homeowners Fact Sheet on Refunds The refund applies as a credit toward the new loan’s upfront premium, not as cash in hand.
Treat a streamline as a payment-reducer. If eliminating mortgage insurance is the goal, conventional refinancing is the path.
Protect Your Payment History While You Work the Process
Whatever route you take, keep paying your mortgage on time. One late payment in the wrong month can delay or disqualify a cancellation request on a pre-2013 loan, and a spotty history will hurt your chances of qualifying for a conventional refinance at a competitive rate. The best MIP removal strategy loses value fast if the underlying payment record falls apart.