Finance
In Michigan, private mortgage insurance (PMI) on a conventional loan is typically required when:
AThe buyer's credit score is below 800
BThe down payment is less than 20% of the purchase price✓ Correct
CThe property is in a flood zone
DThe loan term exceeds 15 years
Explanation
PMI is required on conventional loans when the loan-to-value ratio (LTV) exceeds 80%, meaning the buyer's down payment is less than 20% of the purchase price.
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