Finance
An Oklahoma lender's loan-to-value ratio of 95% on a conventional mortgage without PMI would be:
AStandard practice for all conventional loans
BHighly unusual; conventional loans above 80% LTV typically require PMI to protect the lender against default risk✓ Correct
CRequired for first-time buyers
DOnly permitted for investment properties
Explanation
Conventional loans above 80% LTV (less than 20% down) typically require private mortgage insurance (PMI) because the higher leverage increases the lender's risk. A 95% LTV loan without PMI would be non-standard and unusual for conventional financing.
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