Finance

When a Massachusetts borrower obtains a FHA loan, the upfront mortgage insurance premium (UFMIP) is:

A0.5% of the loan amount
B1.75% of the base loan amount✓ Correct
C3.5% of the loan amount
D2.5% of the loan amount

Explanation

FHA loans require an upfront mortgage insurance premium of 1.75% of the base loan amount, which is typically financed into the loan.

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