Finance
Which of the following is TRUE about FHA loans?
AFHA directly lends money to borrowers
BFHA loans require no down payment
CFHA insures approved lenders against loss from borrower default✓ Correct
DFHA loans are only for low-income borrowers
Explanation
The Federal Housing Administration (FHA) does not lend money directly. It insures approved lenders against loss if a borrower defaults. FHA loans typically require a 3.5% down payment.
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