An FHA loan may be used to purchase which type of property?

An FHA loan is primarily designed to assist low to moderate-income borrowers in purchasing a home and is most commonly associated with single-family residences. This type of financing allows for a lower down payment and has more flexible credit requirements compared to conventional loans, which makes it particularly appealing for first-time homebuyers.

While FHA loans can technically be used for multi-family properties, they are mainly focused on owner-occupied homes. An 8-unit apartment house would generally fall into the category of investment properties, for which FHA financing would not typically apply unless the borrower intends to occupy one of the units as their primary residence. Additionally, seasonal homes usually do not qualify for FHA loans since these properties are not considered primary residences.

Thus, the correct answer highlights the common use of FHA loans for single-family homes, which aligns with the program’s purpose of facilitating home ownership for individuals and families in a primary residence setting.