Finance
In Louisiana, a borrower who obtains an FHA loan with less than 10% down must pay mortgage insurance premium (MIP) for:
A5 years
BUntil the LTV reaches 80%
CThe life of the loan✓ Correct
DOnly the first year
Explanation
For FHA loans originated after June 2013 with less than 10% down payment, the annual MIP must be paid for the life of the loan (it cannot be cancelled unless the loan is refinanced into a non-FHA loan). Loans with 10% or more down require MIP for only 11 years.
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