Finance

Private Mortgage Insurance (PMI) is typically required on a conventional loan when the down payment is:

ALess than 5%
BLess than 10%
CLess than 20%✓ Correct
DLess than 25%

Explanation

Conventional lenders generally require PMI when the borrower's down payment is less than 20%, reducing the lender's risk on loans with higher LTV ratios.

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