Finance
Private Mortgage Insurance (PMI) is typically required on Washington conventional loans when:
AThe loan exceeds $1 million
BThe down payment is less than 20% (LTV exceeds 80%)✓ Correct
CThe borrower has a credit score below 750
DThe loan term exceeds 30 years
Explanation
PMI is required on conventional loans where the down payment is less than 20%, meaning the LTV exceeds 80%. PMI protects the lender against loss if the borrower defaults.
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