Finance
A Kentucky FHA loan requires the borrower to pay both an upfront mortgage insurance premium and an annual MIP. The annual MIP is:
AA one-time charge at closing
BPaid monthly as part of the mortgage payment✓ Correct
COptional if the down payment exceeds 10%
DWaived for first-time buyers in Kentucky
Explanation
FHA's annual mortgage insurance premium is divided into monthly installments and added to the borrower's monthly mortgage payment. It continues for the life of the loan if the down payment is less than 10%.
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