With the current version it need 6 satellites before it will use a GPS mode. If you take off in Stabilize it will not mater but if you use Loiter or Position hold it will not arm until this is meet. I think it also needs a low HDOP below 1.2 before it will trust the GPS. These items are all configurable.
GPS_HDOP_GOOD: GPS Hdop Good - HDOP value no decimal.
ARMING_CHECK: Arming check - Used to set GPS enable checking.
AHRS_GPS_MINSATS: AHRS GPS Minimum satellites - Satellites.
EKF_GPS_CHECK: GPS preflight check