Which of the following is a benefit of FHA loans?

FHA loans are designed to make homeownership more accessible, particularly for first-time buyers and those with limited financial resources. One of the primary benefits of FHA loans is their lower down payment requirements. Borrowers can often secure an FHA loan with as little as 3.5% down, as opposed to conventional loans, which may require significant down payments of 10% to 20% or more. This feature allows individuals with less upfront cash to enter the housing market, making it easier for them to achieve homeownership.

Furthermore, the lower down payment requirement is particularly beneficial for those who may have qualified for a conventional loan but struggle to save enough for a larger down payment. This aspect of FHA loans is one of the key reasons they are a popular choice among many buyers looking for affordable mortgage options.