Finance
Which type of Michigan mortgage loan is most common for borrowers with limited credit history who cannot afford a large down payment?
AConventional loan with 20% down
BFHA loan✓ Correct
CBalloon mortgage
DReverse mortgage
Explanation
FHA loans, insured by the Federal Housing Administration, are popular with first-time and credit-challenged buyers because they allow down payments as low as 3.5% and have more flexible credit standards.
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