Finance
An Ohio buyer wants to purchase a $400,000 home with a conventional loan and 10% down. What is the loan amount and will PMI be required?
A$360,000; no PMI required
B$360,000; PMI required because LTV exceeds 80%✓ Correct
C$400,000; PMI required
D$360,000; PMI is optional
Explanation
Loan amount = $400,000 − $40,000 (10%) = $360,000. With a 90% LTV (greater than 80%), PMI is required on conventional loans until LTV drops to 80%.
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