Finance
A conventional loan with less than 20% down payment typically requires:
AA second mortgage
BPrivate mortgage insurance (PMI)✓ Correct
CA larger down payment within 90 days
DFHA approval
Explanation
When a borrower puts less than 20% down on a conventional loan, lenders typically require private mortgage insurance (PMI) to protect against default. PMI can be canceled once the loan-to-value ratio reaches 80%.
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