PMI waiver is generally determined by the Loan To Value ratio (LTV). LTV is calculated by dividing your principal balance by the lesser of the appraised value or purchase price and can be removed in the following ways:

1. Automatic termination. This occurs when the loan is current, and your loan reaches the date the principal balance was originally scheduled to reach 78% of the original value OR the mid-point of the original amortization schedule, whichever comes first. Since the original amortization schedule was determined at closing, the automatic termination date will not change due to additional principal paid or changes in the housing market.
2. You request early waiver based on additional principal paydown. If you make additional principal payments to reduce your loan balance to 80% LTV, and you have a satisfactory on-time payment history, you may be eligible for this type of waiver. If you choose this option, we are required to obtain a valuation on your property to ensure it has not lost value since origination. If an automated valuation model (AVM) is available for your property, we will obtain this at no additional cost to you. If an AVM is not available for your property, a brokers price opinion (BPO) or appraisal would be required and there would be a cost associated with your request.
3. You request early waiver based on current value. If your home's value increased due to changes in the housing market, your loan is at least 2 years old and have a satisfactory on-time payment history you may be eligible for this type of waiver. If you choose this option, we are required to obtain a BPO or appraisal from the investor of your loan to determine the current value of your property. If your loan is more than 2 years old but less than 5 years old, the required LTV for this type of removal is 75%. If your loan is greater than 5 years old, the required LTV for this type of removal is 80%.
4. You request early waiver based on structural improvements. If your home's value increased due to substantial structural improvements and you have a satisfactory on-time payment history, you may be eligible for this type of early waiver. If you choose this option, you must submit copies of contractor invoices and/or receipts. In this option, we are required to obtain an appraisal through your investor of your loan to verify the current value of your property. If the appraisal indicates the structural improvements increased your property value and your LTV is less than 80% you may be eligible for early waiver.

Please note, if your property was located in a FEMA declared disaster zone in the preceding 24 months, the waiver may be delayed by the investor. If an AVM is not available for any reason, we will give you the option to obtain a BPO or appraisal, in these instances you will be responsible for the non-refundable cost of the valuation. All valuations must be ordered by Flat Branch through the investor of your loan; we are unable to accept valuations obtained elsewhere. Contact Customer Service at (877) 350-0350 to begin a waiver eligibility review.

PMI waivers are generally determined by the Loan To Value ratio (LTV). LTV is calculated by dividing your principal balance by the lesser of the appraised value or purchase price and can be removed in the following ways:

1. Automatic termination occurs when the loan is current, and your loan reaches the mid-point of the original amortization schedule. Since the original amortization schedule was determined at closing, the automatic termination date will not change based on additional principal paid or changes in the housing market.
2. You request an early waiver based on an additional principal paydown. If you make additional principal payments to reduce your loan balance to 65%-70% LTV (varies based on investor, contact us for details), and you have a satisfactory on-time payment history, you may be eligible for this type of waiver. If you choose this option, we are required to obtain a valuation on your property to ensure it has not lost value since origination. If an automated valuation model (AVM) is available for your property, we will obtain this at no additional cost to you. If an AVM is not available for your property, a BPO or appraisal would be required, and there would be a cost associated with your request.
3. You request early waiver based on current value. If your home's value increased due to changes in the housing market, your loan is at least 2 years old and has a satisfactory on-time payment history, you may be eligible for this type of waiver. If you choose this option, we are required to obtain a BPO or appraisal through the investor of your loan to verify the current value of your property. The LTV required for removal is 65%-70% and can vary depending on the investor of your loan, please call us for details.

Please note, if your property was in a FEMA declared disaster zone in the preceding 24 months, the waiver may be delayed by the investor. If an AVM is not available for any reason, we will give you the option to obtain a BPO or appraisal, in these instances you will be responsible for the non-refundable cost of the valuation. All valuations must be ordered by Flat Branch through the investor of your loan; we are unable to accept valuations obtained elsewhere. Contact Customer Service at (877) 350-0350 to begin a waiver eligibility review.

Mortgage Insurance Premium (MIP) is insurance required on FHA loans and protects the lender if a hardship prevents you from making payments that leads to an incurable default. In some instances, a 'Partial Claim' may be obtained to assist you if you've fallen behind on your payments and need assistance catching up. If you are facing a hardship, contact us at 877-350-0350 as soon as possible.

For FHA loans with MIP, waiver is determined by your loan status and how much of a down payment you paid at closing. If your downpayment was 10% or more and you are current on your loan payments, MIP will automatically terminate after 11 years. If your downpayment was less than 10%, MIP is required for the life of your loan.

MIP is based on a percentage of your loan balance, so the amount you pay will decrease over time. If you are looking for ways to remove MIP, speak to your Loan Officer to discuss refinancing into a different loan product.

The USDA Annual Fee is insurance required on USDA loans and protects the lender if a hardship prevents you from making payments that leads to an incurable default. The USDA Annual Fee is required for the life of your loan and cannot be removed; it is based on a percentage of your loan balance, so the amount you pay will decrease over time. If you are looking for ways to remove the Annual Fee, speak to your Loan Officer to discuss refinancing into a different loan type.