Finance
The Federal Housing Administration (FHA) insures loans made by:
AThe federal government directly to borrowers
BApproved private lenders, protecting them against borrower default✓ Correct
COnly HUD-certified builders for new construction
DVA-eligible veterans only
Explanation
The FHA does not lend money; it insures mortgages made by FHA-approved private lenders. If a borrower defaults, the FHA pays the lender, reducing lender risk and enabling loans with lower down payments and more flexible underwriting.
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