Finance
A homebuyer who obtains a conventional loan with less than 20% down will typically be required to purchase:
AAn ALTA lender's title insurance policy
BPrivate mortgage insurance (PMI)✓ Correct
CA homeowners warranty policy
DFlood insurance
Explanation
When a conventional loan has an LTV greater than 80% (less than 20% down), lenders require the borrower to purchase PMI. PMI protects the lender against loss if the borrower defaults.
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