Finance
A Montana buyer who makes a down payment of less than 20% on an FHA loan pays mortgage insurance premium (MIP) that:
ACan be cancelled when 20% equity is reached for all FHA loans
BFor loans originated after 2013, requires MIP for the life of the loan if the down payment is less than 10%✓ Correct
CIs a one-time payment at closing only
DIs lower than conventional PMI in all cases
Explanation
For FHA loans originated after June 2013 with down payments less than 10%, the annual MIP continues for the life of the loan and cannot be cancelled by reaching 20% equity (unlike conventional PMI). For down payments of 10% or more, MIP cancels after 11 years.
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