Mortgage insurance is required on all FHA loans unless 20 percent equity already exists in the home at the time of the loan funding. Otherwise, borrowers must wait for the loan balance to achieve.
On a $250,000 loan, mortgage insurance on a USDA loan is $100 less a month than FHA loans. Mortgage insurance will be required on most mortgages except for VA loans, and conforming loans with an LTV of 80% or less. fha pmi rules changed in 2013 no longer cancelling PMI after the LTV reaches 78%.