What is a primary advantage of FHA loans?

The primary advantage of FHA loans is that they allow for lower down payments. This feature makes homeownership more accessible, particularly for first-time buyers and those who may not have substantial savings for a traditional down payment. FHA loans typically require a down payment as low as 3.5% of the purchase price, which significantly reduces the initial financial barrier to homeownership compared to conventional loans that may require a higher percentage.

While there are benefits associated with other options listed, such as flexible credit requirements, the standout feature of FHA loans is the ability to secure a mortgage with a lower upfront cost. This accessibility can increase the chances of buyers being able to purchase a home, thus contributing to the overall increase in homeownership rates.