Finance
In New York, an FHA (Federal Housing Administration) mortgage loan is insured by the federal government, which means:
AThe borrower does not need to repay the loan
BThe lender is protected against losses if the borrower defaults, allowing lenders to offer lower down payment requirements (as low as 3.5%) to qualifying borrowers✓ Correct
CThe property is owned by the federal government
DThe interest rate is set by the federal government
Explanation
FHA mortgage insurance protects the lender against losses from borrower default. Because the lender is protected, FHA loans can be offered with lower down payment requirements (3.
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