Finance
A North Dakota homebuyer using an FHA loan is required to pay:
ANo mortgage insurance
BAn upfront mortgage insurance premium (UFMIP) and annual mortgage insurance premium (MIP) regardless of down payment amount✓ Correct
CPMI only if down payment is less than 5%
DA funding fee similar to VA loans
Explanation
FHA loans require an upfront mortgage insurance premium (currently 1.75% of the loan amount) and annual MIP paid monthly. Unlike conventional PMI, FHA MIP typically continues for the life of the loan if the down payment is less than 10%, and for 11 years if 10% or more is put down.
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