Finance
What is the primary difference between a conventional loan and an FHA loan available to Pennsylvania homebuyers?
AConventional loans are only available in Philadelphia and Pittsburgh metropolitan areas
BFHA loans are insured by the federal government and typically allow lower down payments and more flexible credit requirements than conventional loans✓ Correct
CConventional loans have no interest rate and buyers only repay the principal balance
DFHA loans are only available for purchasing commercial investment properties
Explanation
FHA loans, insured by the Federal Housing Administration, allow Pennsylvania buyers to purchase with as little as 3.5% down for credit scores of 580 or above, and have more flexible credit underwriting than conventional loans.
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