How to Remove PMI on a Conventional Loan in Nevada

Conventional Loan

How to Remove PMI on a Conventional Loan in Nevada

Reviewed by the HomeMath editorial team Updated 2026-08-06

Key takeaways

You can request PMI removal once your loan‑to‑value (LTV) reaches 80% (20% equity).
Lenders must automatically cancel PMI when the LTV reaches 78% based on the original loan amount.
After at least two years of on‑time payments, you may be eligible for automatic PMI cancellation if the loan meets certain criteria.

Private Mortgage Insurance (PMI) protects the lender when a borrower puts down less than 20% on a conventional loan. Because the lender is taking on extra risk, PMI is required until the loan reaches a safer loan‑to‑value (LTV) ratio.

How Nevada’s community‑property rules can help

Nevada is a community‑property state, meaning that for married borrowers, both spouses’ assets are counted toward home equity. This can help you reach the 20% equity threshold faster, especially if you have savings or other property that can be considered in the equity calculation.

Key milestones for PMI removal

80% LTV request: Once your balance drops to 80% of the original loan amount, you can voluntarily ask the lender to cancel PMI. You’ll need to provide proof that the home’s value hasn’t fallen.
78% automatic cancellation: By law, the lender must automatically terminate PMI when the loan reaches 78% LTV, provided you’re current on payments.
Two‑year rule: If you’ve made at least two years of on‑time payments and the loan’s amortization schedule shows you’re on track to reach 78% LTV, the lender must automatically cancel PMI, even if the balance is still above 78%.

Steps to request removal

Check your latest mortgage statement or log into your online account to see the current balance.
Order a home appraisal (or use a reputable automated valuation) to confirm the property’s current market value.
Gather supporting documents, such as proof of any additional payments you’ve made toward principal.
Submit a written request to your lender, attaching the appraisal and any other required paperwork.

Nevada‑specific considerations

Because Nevada has no state income tax, many borrowers use the money saved on taxes to make extra principal payments, speeding up the equity buildup.
Most closings in Nevada are handled by title companies rather than attorneys, so you’ll likely receive the necessary payoff statements directly from the title agent.

Remember, each lender may have slightly different procedures, so it’s wise to review your loan’s original agreement and ask the loan servicer about any fees associated with the cancellation request.

This article provides general information and should not be considered personalized financial or legal advice.

FAQ

Can I refinance my loan to get rid of PMI?

Yes. Refinancing into a new loan with a lower LTV (typically 80% or less) can eliminate PMI. Keep in mind closing costs and the impact on your interest rate when evaluating this option.

Does Nevada’s first‑time homebuyer program affect PMI?

Some Nevada first‑time buyer programs offer down‑payment assistance that can help you reach the 20% equity threshold faster, which may reduce or eliminate the need for PMI. Check the program’s specific terms.

What documentation do I need to request PMI cancellation?

You’ll generally need a recent appraisal (or automated valuation), proof of on‑time payments, and a written request. Some lenders also require a payoff statement showing the current balance.

Will my credit score impact the ability to cancel PMI?

Credit score does not directly affect the legal requirement to cancel PMI at the 78% LTV point, but a higher score may make the lender more responsive to a voluntary cancellation request.

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