Final answer:
MIP is required for the full term of a 15-year FHA loan if the initial LTV ratio is greater than 90%. If the initial LTV is 90% or less, MIP can be cancelled earlier. This requirement does not depend on the borrower's credit score.
Step-by-step explanation:
The question concerns the Mortgage Insurance Premium (MIP) requirements for borrowers of 15-year FHA loans. Answering the question, the correct statement is that MIP is required for the full term of the loan if the initial loan to value (LTV) ratio is greater than 90%. If the initial LTV is 90% or less, MIP is required until the loan is paid down to 78% LTV or for 11 years, whichever comes first. This means that for borrowers with a higher deposit and therefore a lower LTV, the MIP could be cancelled earlier than the full term of the loan, as long as the required payments are made and other conditions are met. This requirement is not based on the credit score of the borrower. Hence, the correct answer among the provided options is C) MIP is required for the full term of the loan, with the aforementioned conditions.