PMI Guide

Do Conventional Loans Require Mortgage Insurance?

Yes — if you put less than 20% down on a conventional loan, private mortgage insurance (PMI) is typically required. The good news: unlike FHA mortgage insurance, conventional PMI can usually be removed once you build enough equity.

Get Pre-Approved Conventional Overview

How Conventional PMI Works

PMI protects the lender — not you — when equity is thin. You pay it until equity is strong enough.

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Ways to Reduce or Avoid PMI

You do not always have to put 20% down on day one — but you should understand the trade-offs.

  • Put 20% down and skip PMI entirely
  • Improve credit before locking to lower the PMI factor
  • Use gift funds (when allowed) to increase the down payment
  • Consider lender-paid PMI if cash is tight and you prefer a higher rate
  • Compare FHA vs. conventional total cost — PMI is not always the more expensive path

What Affects Your PMI Cost

Small file changes can move the monthly number more than you expect.

  • Loan-to-value (LTV) ratio
  • Credit score / credit tier
  • Loan purpose (purchase vs. refinance)
  • Occupancy (primary vs. second home)
  • Whether PMI is borrower-paid or lender-paid

How We Help You Decide

The right move is the lowest total cost for your timeline — not the lowest down payment alone.

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Step {i + 1}

))}

Keep Exploring

Related guides to help you compare options and move toward pre-approval.

When Can PMI Be Removed?

Cancellation rules at 80% and 78% LTV.

How Much Down Payment Is Required?

3%, 5%, and 20% down trade-offs explained.

Can I Buy With 3% Down?

Low-down conventional programs for first-time buyers.

Get Started

See your payment with and without PMI.

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Related Blog Posts

Recent articles from our blog on conventional loans, credit, and homebuying.

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Frequently Asked Questions

See What PMI Would Cost on Your Purchase

Tell us your price range, down payment, and credit tier — we will show conventional payments with and without PMI.

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