Finance
What is an 'FHA loan' and how does it benefit Pennsylvania first-time homebuyers?
AA loan made directly by the Federal Housing Administration at below-market rates
BA mortgage insured by FHA allowing lower down payments (3.5%) and more flexible qualifying standards than conventional loans✓ Correct
CA Pennsylvania Housing Finance Agency loan available only in rural areas
DA zero-interest loan for first-time buyers administered by PHFA
Explanation
FHA loans are mortgages insured by the Federal Housing Administration, allowing borrowers to qualify with a 3.5% down payment (with 580+ credit score) and more flexible debt-to-income ratios than conventional loans.
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