Finance
An Arizona buyer obtains a conventional loan with a 10% down payment. The lender will likely require:
AFHA mortgage insurance
BPrivate mortgage insurance (PMI)✓ Correct
CA VA funding fee
DA USDA guarantee fee
Explanation
Conventional loans with less than 20% down typically require Private Mortgage Insurance (PMI) to protect the lender. PMI can be cancelled once the LTV reaches 80%.
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