Finance

An Oklahoma homebuyer is using an FHA loan. FHA loans require payment of:

ANo mortgage insurance
BAn upfront mortgage insurance premium (UFMIP) and annual mortgage insurance premium (MIP) for the life of the loan if the down payment is less than 10%✓ Correct
COnly annual MIP for five years
DPrivate mortgage insurance through a private company only

Explanation

FHA loans require both an upfront MIP (currently 1.75% of the loan amount) and annual MIP.

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