Finance

In New York, 'private mortgage insurance' (PMI) is typically required when:

AThe borrower has a credit score below 700
BThe loan-to-value ratio (LTV) exceeds 80% (i.e., the down payment is less than 20%)✓ Correct
CThe property is located in a FEMA flood zone
DThe mortgage term exceeds 20 years

Explanation

Conventional lenders in New York typically require private mortgage insurance (PMI) when the borrower's down payment is less than 20% of the purchase price (i.e.

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