Finance
A homebuyer in NC is applying for an FHA loan. FHA mortgage insurance premium (MIP) differs from PMI in that MIP:
ACan be removed once LTV reaches 80%
BIs only required for loans above $500,000
CRequires an upfront premium plus an annual premium for the life of many loans✓ Correct
DIs paid entirely by the seller at closing
Explanation
FHA MIP includes an upfront MIP (UFMIP) typically rolled into the loan, plus an annual MIP. For many FHA loans (especially those with less than 10% down), MIP cannot be removed regardless of LTV, unlike conventional PMI.
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