Finance
A Louisiana buyer using an FHA loan must pay which additional cost not required on most conventional loans?
AA higher appraisal fee
BMortgage Insurance Premium (MIP) — both an upfront MIP and an annual MIP✓ Correct
CA government processing fee to HUD
DAn FHA closing delay fee
Explanation
FHA loans require both an upfront Mortgage Insurance Premium (UFMIP, typically 1.75% of the loan) and an annual MIP paid monthly. This insurance protects the lender against default and is the primary cost difference from conventional loans.
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