Finance
A Connecticut buyer takes out an FHA loan. In addition to a down payment, the buyer must pay a:
AVA funding fee
BUpfront mortgage insurance premium (UFMIP) and annual mortgage insurance premium (MIP)✓ Correct
CPMI until the loan is paid off
DUSDA guarantee fee
Explanation
FHA loans require: (1) an upfront mortgage insurance premium (UFMIP) typically 1.75% of the loan amount (can be financed into the loan), and (2) an annual mortgage insurance premium (MIP) paid monthly. Unlike conventional PMI, FHA MIP may remain for the life of the loan depending on the down payment.
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