Finance
Private mortgage insurance (PMI) on a Missouri conventional loan is typically required when:
AThe loan-to-value (LTV) ratio exceeds 80%✓ Correct
BThe loan exceeds $500,000
CThe borrower has a credit score below 700
DThe property is located in a flood zone
Explanation
PMI is required on conventional loans when the LTV ratio exceeds 80% (down payment is less than 20%). PMI protects the lender if the borrower defaults. Under the Homeowners Protection Act, borrowers can request PMI cancellation when equity reaches 20%.
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