Finance
In Minnesota, 'mortgage insurance premium' (MIP) on an FHA loan is required to:
AOnly if the down payment is less than 5%
BFund the FHA insurance program that protects the lender in case of borrower default✓ Correct
CCover the cost of the home inspection
DInsure the borrower against unemployment
Explanation
FHA Mortgage Insurance Premium (MIP) is paid by the borrower to fund the FHA insurance fund that protects lenders against default. MIP includes an upfront premium (typically 1.
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