Fannie Mae MI Termination

[Will Cline]

I purchased a townhouse in June of 2021 using a Conventional Fannie Mae loan (5% down.) Due to appreciation in the Charlotte Market I have greater than 20% equity in the property and therefore called my lender to request that mortgage insurance be removed. I was told that Fannie Mae denies any request the first two years after the purchase unless there are documented "substantial improvements."

I want to confirm that is the case based on everyone's experience and if so, is there a way to work around this requirement? I'm converting this to a rental in the coming months and would like the additional cashflow.