Investor · Orlando, FL · Member since 2016 · 68 posts · 17 votes
Hi BP,
I have a rental property that has about 60% equity. About 3 months ago a representative (Supreme Lending) mentioned that a rental property has to have at least 75% equity to remove the PMI. Recently I spoke to a different representative and she mentioned that an alert popped up on the screen that read that Fannie Mae is not allowing PMI be removed from rental properties.
Has something changed that PMI is no longer able to removed from rental properties?
Lender · Winlock, WA · Member since 2020 · 124 posts · 82 votes
5y
So your home must be at 70% Loan to value and at 30% equity to remove PMI. The way you worded it seems like you were getting terms confused but based on what you said you should be at 60% LTV. The only other thing needed is a good payment record as in no payment 30 days late in the past 12 months and no payment 60 days late in the past 24 months. This is straight from the Fannie Mae Servicing Guide.