Yes — HomeReady® requires PMI under 20% down, but unlike most FHA MIP it is cancellable at 20% equity and auto-terminates at 78%.
Does HomeReady® Require PMI? | The 2 Mortgage Guys
Yes — HomeReady® requires PMI under 20% down, but unlike most FHA MIP it is cancellable at 20% equity and auto-terminates at 78%.
Does HomeReady® Require Private Mortgage Insurance (PMI)?
PMI Comes With Low Down — And a Cancel Path
PMI Snapshot
How HomeReady PMI Differs From FHA MIP
PMI Milestones at a Glance
Keep Exploring
Frequently Asked Questions
Want HomeReady PMI Modeled Against FHA?
Yes — if you put less than 20% down, HomeReady® requires PMI. The difference versus FHA is that HomeReady PMI is cancellable once you build enough equity.
HomeReady is a conventional loan. When your loan-to-value ratio starts above 80%, lenders require private mortgage insurance to protect against default risk on the higher-LTV portion.
That PMI is not permanent by design. Once you reach 20% equity based on the original value (or a qualifying appraisal path), you can typically request cancellation. Automatic termination is required at 78% of the original value on a scheduled amortization path when other conditions are met.
Ryan and Steve model monthly PMI cost against FHA MIP so you see which program wins over the years you expect to keep the loan.
The monthly premium is only half the story — cancelability changes long-term cost.
Illustrative conventional rules — your servicer confirmation controls the cancel date.
Related guides on HomeReady cost, equity, and program comparisons.
Ryan & Steve will compare monthly cost, cancel timelines, and total cost of ownership before you choose a program.
HomeReady is a registered trademark of Fannie Mae. All loans are subject to credit and property approval. Program guidelines, income limits, and pricing are subject to change without notice and may not be available in all areas. This website is not affiliated with or endorsed by Fannie Mae, HUD, or any government agency. Information is for educational purposes only and is not a commitment to lend.
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