Finance
An FHA loan differs from a conventional loan in that FHA loans:
ARequire a minimum 20% down payment
BAre insured by the federal government, allowing lower down payments✓ Correct
CAre only available to first-time homebuyers
DHave no maximum loan limit
Explanation
FHA loans are insured by the Federal Housing Administration, which reduces lender risk and allows borrowers to qualify with as little as 3.5% down, lower credit scores, and higher debt ratios than conventional loans.
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