Deductions & credits

Yes, for FHA loans you have to allocate the amount of the upfront PMI across either 84 months (7 years) or the length of the mortgage, whichever is shorter. The only loans where you can take the full deduction for upfront PMI in the tax year you paid it are VA loans and USDA loans. 

As for your second question, yes you can deduct the two months of taxes indicted on your closing documents.