Finance
Which of the following is TRUE about FHA mortgage insurance premium (MIP)?
AFHA MIP is the same as conventional PMI
BFHA requires both an upfront MIP and annual MIP, which may remain for the life of the loan✓ Correct
CFHA MIP is automatically cancelled when LTV reaches 80%
DFHA MIP is paid only by borrowers with less than 5% down
Explanation
FHA loans require an upfront MIP (added to the loan balance) and annual MIP (paid monthly). For loans with less than 10% down, annual MIP continues for the life of the loan.
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