That way I don't have to pay PMI. But, since I am doing a 3 % conventional loan, I am stuck with paying PMI until I refinance. One thing I learned about buying a resale home is to NEVER offer more than what the seller is asking. That was one mistake I would never do again. Also, I need the seller to pay for appraisal and inspection costs or at least pay half and have it in writing, that way if the deal doesn't go through, then I will not be the only one taking the loss.