Now, if you have an alternative interpretation of the Regs, please share. 

Shalom Luis,Jonathon is right in his interpretation of the law in Texas.

In some cases, Fannie Mae may approve a PMI removal even earlier than the 2-year seasoning period if you can prove the substantial increase in the property’s value.Speak with Your Lender: Given the complexity here, consider having a direct conversation with your lender and asking for a specific review of your PMI removal request based on the current LTV and any potential reappraisal opportunities.In summary, while it’s generally required to wait for the two-year seasoning period for PMI removal on HomeStyle loans, there could be flexibility depending on the lender’s interpretation of Fannie Mae's guidelines and your property’s new appraised value.

.: UPDATE:....How do others interpret this?....

Jim,I'm not sure you how you would interpret my comment to me I represent ODC as a gold standard. 

For any smaller investor (and I would say anyone investing less than $1mm equity/yr, but clearly open to interpretation), I agree.  

@Josh LemonsThey have a regulation A offering which is open to accredited and non accredited investorsThe great thing is they have to submit their offering circular and have it qualified by SEC as well as submit financial information etc.All this means is the information is readily available and if you do not understand it then I recommend engaging an attorney who can interpret it.

For instance how the particular municipality examiner will interpret and review the plans, how your neighbors or someone with standing may respond through an appeal etc. etc. 

You don't understand the mechanics of how loan repayment works.The amortization tables aren't wrong, it's your interpretation of them that is.

You received some feedback from @Mija Aguilera who has local expertise and knowledge of the area and I am interpreting his comments as the location is viable for commercial use.