Bye-Bye PMI vs standard conventional PMI vs FHA MIP - structural comparison
Bye-Bye PMI
Say bye-bye to PMI. On CCM's Bye Bye PMI program, there is no mortgage insurance payment - not monthly, not upfront, not ever. This handout compares the three MI structures conceptually. Program parameters per current CCM Bye Bye PMI guidelines, subject to change.
| Factor | Bye-Bye PMI | Standard Conv. PMI | FHA MIP |
|---|---|---|---|
| Who pays the MI | No borrower MI payment; program structure per CCM guidelines | Borrower - separate monthly charge | Borrower - upfront MIP + monthly MIP |
| MI line on statement | None - no separate MI line item | Separate monthly PMI charge | Monthly MIP line item |
| Down payment range | A modest down payment - less than 20% - per program guidelines | Varies; PMI typically applies below the conventional down-payment threshold | A low down payment for eligible buyers |
| MI cancellation | No borrower MI payment to cancel; program structure fixed at origination per CCM guidelines | Cancels at equity threshold per federal law (HPA) | Depends on term and LTV at origination; may be life-of-loan |
| Credit profile required | Min FICO 740, DTI at or below 43% per program | Varies by lender and MI company | Flexible - per HUD guidelines |
| Loan term | 30-year fixed only | Multiple terms available | Multiple terms; 30-year most common |
| Occupancy | Primary residence only | Primary, second home, investment | Primary residence only |
Three ways to lose PMI - equity milestones by path
Nothing to remove - there is no borrower MI payment from day one, so there is no cancellation milestone to track.
No MI, everYou can request cancellation at 80% LTV; the lender must automatically terminate it at 78% LTV under federal law (HPA), based on the original value and payment schedule.
80% request / 78% automaticRemoval depends on term and LTV at origination - a 30-year loan starting above 90% LTV typically carries MIP for the life of the loan; refinancing out of FHA is the usual exit.
Term + LTV dependentCCM Bye Bye PMI program parameters per current guidelines, subject to change
| Parameter | Current Guideline (Source: CCM Bye Bye PMI Guidelines, 7/17/2025) |
|---|---|
| Loan term | 30-year fixed |
| Occupancy | Primary residence only |
| Loan amounts | Conforming and High Balance permitted |
| LTV | 80.01% - 85% |
| Min FICO | 740 |
| DTI | 43% (maximum) |
| Loan purpose | Purchase and Rate/Term Refinance |
| Property types | 1-2 Unit SFR, Condo (warrantable), PUD |
| Ineligible | 3-4 Unit, Non-Warrantable Condos, Co-Ops, Leasehold, Manufactured Housing, Puerto Rico |
| Underwriting | AUS DU or LP Approve/Eligible findings required; manual underwrite not permitted |
| Mortgage insurance | No borrower MI payment; program structure and pricing per current CCM guidelines, subject to change |
| Exceptions | Not permitted |
Two separate considerations - keep them in separate buckets
Mistakes to avoid Three ways buyers misjudge their MI picture
Four questions to determine if Bye-Bye PMI fits your situation
Is your FICO at or above 740?
The program floor. We check in the soft pull at the start of the first call. Below 740, other programs may be better suited.
Is your back-end DTI at or below 43%?
The DTI ceiling is a firm program requirement. We calculate your DTI in the consultation and flag anything that might push you over.
Is this a primary residence purchase or rate/term refi?
Occupancy and loan purpose are gated. Investment properties, second homes, and cash-out refis are not eligible under the program.
Is your property type eligible?
1-2 unit SFR, warrantable condo, or PUD. Non-warrantable condos, co-ops, leasehold, manufactured housing, and 3-4 unit properties are ineligible.
Check your eligibility - free
We verify FICO, DTI, occupancy, and property type against program requirements and compare Bye-Bye PMI to your alternatives side by side.
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