Finance
Private mortgage insurance (PMI) is typically required by West Virginia lenders when:
AThe borrower has an excellent credit score
BThe down payment is less than 20% of the purchase price✓ Correct
CThe loan is a VA-guaranteed loan
DThe loan amount exceeds $1 million
Explanation
PMI protects the lender against default when the buyer makes a down payment of less than 20%. West Virginia conventional lenders typically require PMI until the borrower achieves 20% equity in the home.
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