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My broker is saying I can remove PMI within a few months of buying my house without an appraisal. I’m having doubts. Can someone tell me what they know?

I’m buying a house for 500000 with 25k down. Then going to turn around and sell my current place. I will have more than enough to meet the 20% LTV with the proceeds from my current house. I’m in Washington state. I’m not sure who my servicer is and I assume it would get sold but who knows.

The broker stated confidently that I can recast my mortgage as soon as my current house sells and have the PMI removed without another appraisal. But I’m reading so many conflicting reddit threads about this and not getting a straight answer with my research.

Does anyone know how this work? I went with a convention in lieu of a bridge loan because I figured recast would be more financially reasonable.

She wrote to me this in an email

“I have verified that the recast is something that is allowed by AGENCY – IE: Freddie Mac/Fannie Mae and so you would have option to recast even in the unlikely event that the loan was sold again prior to your home selling.

The MI would fall off at that time and there would not be an appraisal required if requesting recast based on the original purchase price/loan amount”

submitted by /u/Throwaway894742873
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source https://www.reddit.com/r/RealEstate/comments/iim2ph/my_broker_is_saying_i_can_remove_pmi_within_a_few/
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