Finance
An FHA loan insured through HUD requires the borrower to pay:
ANo mortgage insurance at any time
BAn upfront MIP and annual MIP (mortgage insurance premium)✓ Correct
COnly PMI through a private insurer
DA VA funding fee
Explanation
FHA loans require an Upfront Mortgage Insurance Premium (UFMIP) of 1.75% of the loan amount at closing, plus an annual MIP paid monthly. MIP protects HUD against borrower default and differs from PMI on conventional loans.
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