L.T.V. / P.M.I. / FHA Question

[David Valcich]

Hello everyone!

I'm a newbie here and this is my first post so please forgive my ignorance.

My wife and I have made an offer on an REO property. It's a condo and this will be our first home ever! :D

Anyhow, My question is do we still have to pay PMI if the selling price is $115,000 and the FHA mortgaged loan amount is $112,000....even if the bank's appraiser comes out to the property and assigns an appraised value of $145,000?

Thanks in advance!
David V.