PMI on Bank & Owner Financing?

[John Leonard]

My wife and I are looking to buy a new PR and convert our existing one to a rental. With a new baby on the way we could use the room. The plan is for the new home to be a live in flip for 2-4 years. I am going to look at a property this week. Notes on the property are possible seller financing. Last sale price was $54k in 2001. So obvious equity in the home. It’s listed for 139,900. It needs complete updating but appears to be a very good candidate for our plan.

My goal was to offer 3 offers on the home: 100% owner financed price, hybrid bank and owner finance, and conventional loan price. All based on homes condition, comps, etc.

My question is this: if we did 30% owner financing, would the conventional loan still require PMI? Or since they'd be in a first position at 70% they wouldn't?

Thanks!