Finance
An FHA loan differs from a conventional loan primarily because:
AIt requires no down payment
BIt is insured by the federal government✓ Correct
CIt is available only in rural areas
DIt has a fixed interest rate by law
Explanation
FHA loans are insured by the Federal Housing Administration, which protects lenders against borrower default. This insurance allows lenders to offer loans to borrowers with lower down payments and credit scores than conventional loans typically require.
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