PMI - based on LTV or Loan??

Hello, I’m looking to buy a personal home, and I am wondering if PMI is required if you do not have 20% equity in LTV, or is it that you have to pay down 20% of the loan? I had a mortage officer tell me I"d need to pay PMI for two years in NYState if I don’t put 20% down…even if I get the property at more than 20% less than true market value. Make sense to anyone?

PMI is based on loan amount not market value. PMI is paid on any borrowed amount over 80% LTV of the purchase price.

If you are buying at a lower price and you know that the true value is higher, you can refinance out of the PMI at a later date.