Finance
What is private mortgage insurance (PMI) and when is it required in Nevada?
AInsurance required for all Nevada home purchases
BInsurance required by lenders when a conventional loan's LTV exceeds 80%✓ Correct
CLife insurance the borrower must carry for the lender's benefit
DInsurance against title defects for the buyer
Explanation
PMI is insurance that protects the lender if the borrower defaults. It is typically required on conventional loans when the down payment is less than 20% (LTV > 80%). Borrowers can request PMI cancellation once equity reaches 20%.
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