Finance
Under what circumstances would an Alaska homeowner most likely need to pay Private Mortgage Insurance (PMI)?
AWhen buying a home with a VA loan
BWhen making a down payment of less than 20% on a conventional loan✓ Correct
CWhen the property is located in a flood zone
DWhen using an FHA loan (FHA uses MIP, not PMI)
Explanation
PMI is required on conventional loans when the borrower makes less than a 20% down payment (LTV above 80%). It protects the lender, not the borrower.
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