It's possible to build a home within 60 days if a crew is there every day, heck on that ABC show they build a home in a week working practically 24/7. As long as they are making sure things are done correctly it should be fine. A 60 day lock is only about .125% higher in rate, and 90 days about .250%. PMI would be listed where your monthly payment is broken down (principal/interest, taxes, insurance, and then mortgage insurance/PMI), it's not a line item on the GFE itself (other than line 1002 where a dollar figure might be listed "__ months @ $XXX.XX/mo" ).
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