PMI is insurance provided by non-government insurers that protect the lender against loss if a borrower defaults. Typically PMI is required if your down payment is less than 20 percent of the purchase price. For example, on a purchase price of $100,000.00, PMI would be required if you put less than $20,000 (20% of $100,000) as a down payment.
Even though MIP is seems to be the same thing as PMI, it is actually much more different in a lot of ways. This is actually a program that is monitored by HUD and is required on all FHA loans; no matter how much money you put down. However, the MIP will be there for a certain period of time.
You are required to have at least 20% equity in the home and must have been paying on the mortgage for a minimum of 5 years.