Finance
An Oklahoma borrower is applying for a conventional loan. The lender requires private mortgage insurance (PMI) when:
AThe loan amount exceeds $100,000
BThe down payment is less than 20% of the purchase price, resulting in an LTV ratio above 80%✓ Correct
CThe property is located outside Tulsa or Oklahoma City
DThe borrower has more than one property
Explanation
PMI is typically required on conventional loans when the borrower's down payment is less than 20%, meaning the loan-to-value ratio exceeds 80%. PMI protects the lender if the borrower defaults.
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