Bella is interested in buying a $155,000 home. What is the minimum down payment she needs to avoid PMI?

The minimum down payment she needs to avoid PMI is $31,000 because a minimum 20% of down payment made the loan LTV goes below 80%. The Private Mortgage Insurance is an insurance for the private bank loan which has above 80% Loan to Value ratio or LTV for short. This insurance aims to shift the risk of the unpaid above 80% LTV loan from the debtor to an insurance company.