Finance
Which of the following is NOT considered an allowable use of an FHA loan?
APurchase of a single-family home as a primary residence
BPurchase of a 2-4 unit property if the buyer occupies one unit
CPurchase of investment rental property that the buyer will not occupy✓ Correct
DPurchase of a HUD-approved condominium unit
Explanation
FHA loans are intended for owner-occupants and require the borrower to occupy the property as their primary residence. They cannot be used to purchase investment or rental property that the buyer will not occupy. Eligible properties include 1-4 unit homes (if owner-occupied), condos, and certain manufactured homes.
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