Jordan and Priya want to buy a $360,000 owner-occupied duplex in the city. They have limited cash for a down payment, are not veterans, and the property is not in a rural area. Which loan type is the best fit?
Correct Answer
A) An FHA-insured loan that can be used for an owner-occupied 1-4 unit property
An FHA-insured loan is the best fit because FHA financing is designed for approved private-lender loans with low down payments and can be used on owner-occupied properties containing one to four units. The couple is not relying on military eligibility, and the property is not rural, so FHA matches the facts better than VA or USDA.
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