Finance
Rhode Island buyers using an FHA loan must pay an upfront mortgage insurance premium (UFMIP). This premium is typically:
A0.5% of the loan amount
B1.0% of the loan amount
C1.75% of the loan amount✓ Correct
D2.5% of the loan amount
Explanation
FHA loans require an upfront mortgage insurance premium (UFMIP) of 1.75% of the base loan amount, which can be financed into the loan or paid at closing.
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