Finance
Private mortgage insurance (PMI) on a Virginia conventional loan can be cancelled when:
AThe loan has been paid for 5 years
BThe loan-to-value ratio reaches 80% based on original value or appraisal✓ Correct
CThe borrower's income increases by 25%
DPMI cannot be cancelled once started
Explanation
Under the Homeowners Protection Act, PMI must be cancelled when the LTV reaches 80% of the original value. Borrowers may request cancellation; lenders must automatically cancel at 78% LTV.
Related Virginia Finance Questions
- In Virginia, a VA-guaranteed loan benefit is available to:
- A Virginia lender requires private mortgage insurance (PMI) on a conventional loan. PMI is typically required when the loan-to-value (LTV) ratio exceeds:
- A USDA Rural Development loan in Virginia is intended for:
- A Virginia buyer obtains an FHA loan. Which statement about FHA loans is correct?
- A balloon mortgage in Virginia is characterized by:
- A Virginia buyer who obtains a VA loan is required to pay:
- A 'teaser rate' on an adjustable-rate mortgage in Virginia is:
- Under the Equal Credit Opportunity Act (ECOA), a lender in Virginia may NOT discriminate in lending based on:
Practice More Virginia Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Virginia Quiz →