PMI Questions/203 FHA loan

[Erika A.]

Hello BP!

I am considering using a 203 FHA loan. I'm looking to put as little down as possible.

If we buy a property below market value- meaning it already has equity (For example, if I buy a property at 80k but it is worth or appraised at 100k and I put down 3.5%) would I still be required to pay PMI?

Is PMI determined based on loan to value? Or the down payment towards purchase price?

Any information would be great! Thanks in advance.