The FHA does not make direct loans to borrowers but instead guarantees loans made by approved lenders.

Name: The FHA does not make direct loans to borrowers but instead guarantees loans made by approved lenders.
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The FHA acts as a guarantor for loans made by approved lenders, which means that if the borrower defaults on the loan, the FHA will reimburse the lender for a portion of the losses. This helps to reduce the risk for lenders and makes it easier for borrowers to qualify for home loans.

The FHA Does Not Make Direct Loans to Borrowers but Instead