Finance
Mortgage insurance for a Utah FHA loan includes which of the following?
AOnly monthly insurance premiums with no upfront cost
BAn upfront mortgage insurance premium (UFMIP) plus annual mortgage insurance premiums (MIP)✓ Correct
COnly an upfront premium with no monthly charges
DNo mortgage insurance requirement for FHA loans
Explanation
FHA loans require both an upfront mortgage insurance premium (UFMIP), currently 1.75% of the loan amount, and annual MIP paid monthly. Unlike conventional PMI, FHA MIP is typically required for the life of the loan if the down payment is less than 10%.
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