Finance
An FHA loan is insured by:
AFannie Mae
BFreddie Mac
CThe Federal Housing Administration✓ Correct
DThe Veterans Administration
Explanation
FHA loans are insured by the Federal Housing Administration (part of HUD). FHA insurance protects the lender against loss if the borrower defaults, allowing lenders to offer lower down payment options (as low as 3.5%) to qualifying borrowers.
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