Which types of properties are typically eligible for FHA financing?

FHA financing, or Federal Housing Administration financing, is specifically designed to assist borrowers in purchasing residential properties, primarily to promote homeownership among low to moderate-income individuals. Single-family homes are a prime category of properties that are eligible for FHA loans because the program is geared towards providing affordable and accessible mortgage options for buyers looking to purchase their primary residence.

These types of properties typically meet FHA’s requirements, including being structurally sound and safe for habitation, which aligns with the goal of FHA financing to protect borrowers and ensure that homes meet certain standards. While multiple-unit properties, such as duplexes or triplexes, can also be financed through FHA loans if the borrower occupies one unit, single-family homes remain the most common and straightforward choice for FHA financing.

In contrast, commercial properties and luxury estates do not qualify for FHA loans as they serve entirely different markets and purposes. Rental apartments also fall outside of FHA financing guidelines since they are not intended for owner-occupants. Thus, single-family homes represent the ideal fit for FHA financing, making them the correct answer.