Can you refi to new higher assessed value and eliminate PMI?

[Luca Mastrangelo]

Im looking to buy a property in MA that I can live in for the next 2-5 years and then rent when Im done.  

Properties range from 300-400k.  I could put 20% down but will leave little to no room for improvements/work that needs to be done.

My questions is, can I put 5% down on a fannie loan, use my remaining cash to upgrade/rehab the property and refinance in 1-2 years for an increased value, ideally 20% higher and then eliminate PMI based on the new higher assessed value?

Any thoughts? TIA

I 

[Bill Gulley]

You can get into the loan at the killer PMI premium, even that long I'd suggest 10% down, then after you improve the property and the loan/title is seasoned (2 years is not a problem) you can refi, no cash out basis at 80% without PMI or 75/70 LTV cash out still without PMI. An FHA loan is different with MIP and the premium is charged to the life of the loan, I'm not sure off the top of my head if that is short rated or not in a total refi payoff. But your thought is doable, see your lender for your plan. :)