Finance
A South Carolina FHA loan requires mortgage insurance premium (MIP). How does this differ from PMI?
AMIP is the same as PMI
BMIP is required for FHA loans regardless of down payment; PMI is only for conventional loans with LTV above 80%✓ Correct
CPMI is government-provided; MIP is private
DMIP only applies for the first 5 years; PMI is permanent
Explanation
FHA loans require both an upfront MIP (paid at closing or rolled into the loan) and annual MIP regardless of the LTV. PMI on conventional loans is typically cancelled once LTV reaches 80%.
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