Finance
An FHA loan in Minnesota differs from a conventional loan primarily because:
AIt has no down payment requirement
BIt is insured by the federal government, allowing lower down payments and more flexible qualification standards✓ Correct
CIt is only available to first-time homebuyers
DIt requires a 30-year term
Explanation
FHA loans are insured by the Federal Housing Administration, allowing lower down payments (minimum 3.5% for qualified borrowers) and more flexible credit and income requirements than conventional loans. The government insurance protects lenders against default, making them more willing to lend to less-qualified borrowers.
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