Finance
A Virginia buyer obtains an FHA loan. Which statement about FHA loans is correct?
AFHA loans are made directly by the federal government
BFHA insures the loan, and the loan is made by an approved private lender✓ Correct
CFHA loans require a minimum 20% down payment
DFHA loans are only available for new construction
Explanation
The FHA does not lend money directly. Instead, it insures loans made by approved private lenders, reducing the lender's risk and enabling lower down payments (as low as 3.5% for qualifying borrowers).
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