Finance
Under conventional lending standards, what is the maximum LTV ratio for a first mortgage on a single-family home that does NOT require private mortgage insurance (PMI)?
A75%
B80%✓ Correct
C90%
D95%
Explanation
Conventional lenders typically require PMI when the LTV exceeds 80%. At 80% LTV or below, the borrower has at least 20% equity, and lenders generally do not require PMI.
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