Finance
Private mortgage insurance (PMI) is typically required by Iowa lenders when:
AThe loan is an FHA loan
BThe borrower's down payment is less than 20% and the LTV exceeds 80%✓ Correct
CThe loan term exceeds 30 years
DThe property is a commercial investment
Explanation
PMI protects the lender if the borrower defaults on a conventional loan with less than 20% down (LTV above 80%). It is paid by the borrower until sufficient equity is built up.
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