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Another option to avoid PMI altogether is to negotiate for the seller to pay PM to the break even point at closing. It's still a sellers market is a lot of areas, especially where inventory is low but it's still possible if the home has been sitting on the market for awhile or if the seller is motivated to sell for one reason or another.

If the seller does not want to do that, the buyer can pay it. For example, if you would have purchased a home in June of 2020, put 10% down on a $415k house, it can cost you $5k to pay the PMI upfront.

Unfortunately, pmi can't be avoided on a fha loan, but you can still refinance and get the pmi off if you have the funds. It's worth a try to ask the seller for $ towards the closing costs. You can also offer to pay your lender's commission for a discounted rate. When the bank pays them, you pay more. This is why it's important to work with a lender who knows what they're doing!

Source-Gigi Hunermund
Licensed in GA and Florida!