Finance
A Minnesota homebuyer's credit score is 620. Which loan program would most likely be accessible to them?
AConventional loan with 5% down
BFHA loan (which accepts scores as low as 580 for 3.5% down)✓ Correct
CJumbo loan at competitive rates
DVA loan with no score requirement
Explanation
FHA loans accept credit scores as low as 580 for the standard 3.5% down payment. A 620 credit score would qualify for FHA but is at the low end for conventional loans (which typically require 620-640 minimum, with much better terms at 740+). VA loans don't have a mandated minimum score but lenders usually require 580-620. FHA is typically the most accessible for lower credit scores.
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