Finance
What is an FHA loan?
AA loan made directly by the Federal Housing Administration
BA loan insured by the Federal Housing Administration, allowing lower down payments and more flexible qualifying standards✓ Correct
CA grant for first-time homebuyers
DA loan with no interest for low-income buyers
Explanation
FHA loans are originated by approved lenders but insured by the Federal Housing Administration. This insurance allows lenders to offer loans with lower down payments (as low as 3.5%) and more flexible credit requirements. Borrowers pay a mortgage insurance premium (MIP).
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