A borrower on a conventional mortgage makes a 25% down payment. With that amount of down...

A borrower on a conventional mortgage makes a 25% down payment. With that amount of down payment, she will be required to obtain ________.

A.        FHA insurance
B.         VA insurance
C.         private mortgage insurance
D.        GNMA payment guarantees
E.         none of the above

Expert Solution

Answer : E. None of the above

Explanation : If the downpayment is less than 20%, private mortage insurance needs to be purchased due to low credit score while in case of 25% down payment on a conventional mortgage insurance is not required.

keosha answered 2 years ago

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