Which loans are typically backed by the government and often more accessible to first-time home buyers?

FHA loans and VA loans are specifically designed to assist first-time home buyers by providing more accessible financing options.

FHA loans, backed by the Federal Housing Administration, offer lower down payment requirements, generally allowing as little as 3.5% down for qualified buyers. This feature makes them particularly attractive to first-time buyers who may struggle to save a larger down payment. Additionally, FHA loans are designed to cater to borrowers with lower credit scores and have more flexible income requirements compared to conventional loans.

On the other hand, VA loans are guaranteed by the U.S. Department of Veterans Affairs and are available to eligible veterans, active-duty service members, and certain members of the National Guard and Reserves. These loans typically require no down payment, no private mortgage insurance (PMI), and offer competitive interest rates, making them a viable option for eligible first-time home buyers.

Combining both FHA and VA loans under the umbrella of government-backed loans highlights the accessibility they provide to first-time home buyers, making it clear why the correct answer encompasses both options.