Finance
Private Mortgage Insurance (PMI) is typically required on a conventional Texas mortgage when the loan-to-value (LTV) ratio exceeds:
A75%
B80%✓ Correct
C90%
D95%
Explanation
Lenders typically require PMI when the LTV ratio exceeds 80% (i.e., the down payment is less than 20%). Under the Homeowners Protection Act, PMI must be cancelled when the LTV reaches 78%.
Related Texas Finance Questions
- A Texas buyer is purchasing a home using an FHA 203(k) loan. This loan is used for:
- A 'home equity line of credit' (HELOC) in Texas differs from a traditional home equity loan in that:
- A Texas FHA loan allows a seller to contribute up to 6% of the sales price toward the buyer's closing costs. These are called:
- A Texas commercial borrower's lender requires personal guaranty. This means:
- A Texas mortgage loan officer asks a borrower for their most recent two years of tax returns. This is typically required for borrowers who are:
- A Texas buyer qualifies for a Conventional 97 program. This means they can put down:
- A Texas homebuyer signs a rate lock agreement for 30 days. If the loan doesn't close within 30 days:
- The Texas Bootstrap Loan Program provides:
Practice More Texas Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Texas Quiz →