Finance
In New Mexico, which of the following is TRUE about FHA Mortgage Insurance Premium (MIP)?
AMIP is eliminated when the loan-to-value ratio reaches 80%
BFHA MIP includes both an upfront premium (UFMIP) and ongoing monthly premiums✓ Correct
CMIP is the same as PMI
DFHA MIP is waived for first-time homebuyers
Explanation
FHA loans require an Upfront Mortgage Insurance Premium (UFMIP, typically 1.75% of the loan) plus annual MIP paid monthly. Unlike conventional PMI, FHA MIP may remain for the life of the loan in many cases.
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