Finance
A Texas FHA loan requires both an upfront mortgage insurance premium (UFMIP) and an annual mortgage insurance premium (MIP). Currently, the UFMIP is approximately:
A0.5% of the loan amount
B1.75% of the loan amount✓ Correct
C2.5% of the loan amount
D3.5% of the loan amount
Explanation
FHA loans currently require an upfront MIP of 1.75% of the base loan amount, which can be financed into the loan. Annual MIP rates vary based on LTV, loan term, and loan amount.
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