Finance
A New Jersey condominium buyer who obtains an FHA loan will be required to pay:
ANo mortgage insurance premium
BAn upfront MIP and annual MIP (mortgage insurance premium) for the life of many FHA loans✓ Correct
COnly PMI if the down payment is under 20%
DA one-time MIP at closing only
Explanation
FHA loans require an upfront mortgage insurance premium (UFMIP) paid at closing (or rolled into the loan) and annual MIP paid monthly. For loans with less than 10% down, MIP is required for the life of the loan. This is different from conventional PMI, which can be cancelled at 80% LTV.
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