Finance
What is an FHA mortgage insurance premium (MIP)?
AA premium paid by the seller on FHA loans
BInsurance paid by FHA borrowers to the government insuring the lender against losses from default✓ Correct
CPrivate insurance required by FHA lenders
DA premium waived for first-time buyers
Explanation
FHA MIP is paid by borrowers to the government (FHA) to insure the lender against default losses. It includes an upfront premium (typically 1.75% of loan amount) paid at closing and an annual premium added to monthly payments.
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