Having mortgage insurance is often worth it. That’s because FHA loans with MIP let you buy a home with a much smaller down payment than you could otherwise. And FHA loans are extra lenient about credit. So if you don’t qualify for a mortgage without MIP, it might be best to bite the bullet and pay mortgage insurance for a few years. You’ll start building equity sooner. And you could refinance into a conventional loan with no PMI once you have 20 percent equity.