Finance

In New Mexico, which of the following loans would NOT require private mortgage insurance (PMI)?

AA conventional loan with 10% down
BA VA loan (no PMI—replaced by VA funding fee)✓ Correct
CAn FHA loan (uses MIP instead of PMI, but similar concept)
DA conventional loan with 15% down

Explanation

VA loans do not require PMI—they use a one-time VA funding fee instead. FHA loans use a Mortgage Insurance Premium (MIP) which functions similarly to PMI.

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