Finance
A NH buyer is obtaining a conventional loan and will pay PMI (private mortgage insurance). PMI is typically required when:
AThe LTV ratio exceeds 80% (down payment less than 20%)✓ Correct
BThe loan amount exceeds $417,000
CThe buyer's credit score is above 750
DThe loan term exceeds 15 years
Explanation
Private mortgage insurance (PMI) is required on conventional loans when the loan-to-value ratio exceeds 80%, meaning the buyer puts less than 20% down. PMI protects the lender in case of default and can be cancelled once the LTV reaches 80% under the Homeowners Protection Act.
Related New Hampshire Finance Questions
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