Finance
Private Mortgage Insurance (PMI) is typically required when:
AThe borrower has a credit score below 700
BThe loan-to-value ratio exceeds 80%✓ Correct
CThe property is a multi-family dwelling
DThe borrower is a first-time homebuyer
Explanation
PMI is generally required when the borrower's down payment is less than 20% and the LTV ratio exceeds 80%. PMI protects the lender — not the borrower — in case of default.
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