Which of the following can be considered a benefit of an FHA loan?

A lower down payment requirement is a significant benefit of an FHA loan. FHA loans are designed to make homeownership more accessible, particularly for first-time buyers or those with lower credit scores. Traditionally, FHA loans allow for down payments as low as 3.5% of the purchase price, which can ease the financial burden on buyers who might struggle to save for a larger down payment. This feature can be particularly advantageous in the context of the West Virginia housing market, where many residents may find it challenging to afford higher upfront costs.

While fixed interest rates and higher loan limits can also be appealing aspects of FHA loans, they are not unique to FHA loans alone, as many conventional loans may also offer these features. Additionally, the elimination of closing costs is not characteristic of FHA loans; borrowers typically still incur various closing costs, although some of these can be negotiated or covered through seller concessions. Hence, the focus on lower down payment requirements succinctly encapsulates a primary advantage of choosing an FHA loan for potential homebuyers.