FinancingEASY
Conventional loans require private mortgage insurance (PMI) when the down payment is:
Correct Answer
C) Less than 20%
Conventional loans typically require private mortgage insurance (PMI) when the down payment is less than 20% (LTV greater than 80%). PMI can be canceled when equity reaches 20%, unlike FHA MIP which has longer duration requirements.
Answer Options
A
Less than 5%B
Less than 10%C
Less than 20%D
Less than 25%Video Explanation3 min
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Related Topics & Key Terms
Related Topics:
loan-to-value-ratiofha-vs-conventional-loansmortgage-insurance-types
Key Terms:
PMIprivate mortgage insuranceloan-to-value ratioconventional loanHomeowners Protection Act
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