Finance
In Alaska, a buyer using an FHA loan must pay:
APrivate Mortgage Insurance (PMI) only if the LTV exceeds 95%
BAn upfront Mortgage Insurance Premium (MIP) and annual MIP✓ Correct
CA VA funding fee in lieu of mortgage insurance
DNo mortgage insurance because FHA loans are government-guaranteed
Explanation
FHA loans require two forms of mortgage insurance: an upfront Mortgage Insurance Premium (UFMIP, currently 1.75% of the loan amount) and an annual MIP paid monthly. The annual MIP duration depends on the LTV and loan term. This insurance protects the FHA against borrower default.
Related Alaska Finance Questions
- Which of the following correctly describes amortization in an Alaska mortgage?
- Under Alaska Housing Finance Corporation (AHFC) programs, what type of property typically qualifies for financing?
- A buyer in Alaska receives a 'Closing Disclosure' before closing. Under TRID, this document must be provided at least how many business days before consummation?
- Which type of mortgage loan is characterized by a fixed interest rate and equal monthly payments that fully repay the loan over its term?
- Which federal law prohibits lenders from requiring a borrower to use a specific title company or settlement service provider as a condition of the loan?
- Private Mortgage Insurance (PMI) is typically required when the buyer's down payment is:
- A seller in Alaska carries back a purchase money mortgage. This means:
- Alaska is considered a 'lien theory' state, which means:
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