No PMI with Equity of 80% or greater

[Michael Dunn]

Good morning,

My question is likely easy to answer , but I myself am unsure about it

Here is an Example:

If you use any type of finance and put down anything Less than 20% down , then you will have PMI attached to you monthly note , yes ?

So an FHA loan , with 3.5% down would definitely have the monthly PMI attached to it

But, what if at the time that you purchase the property, that that property has 20% or greater Equity in It ?

So you buy the property for $80,000  and you put 3.5% down.  The Property is worth ( appraisers for ) $100,000 ..... and so by this, there is already 20% of equity in the house .

So would the PMI Automatically be dropped from your note ?

Hope my question makes sense . And I really appreciate the feedback