Which of the following is an insured loan?

The correct choice is FHA, as it represents the Federal Housing Administration loans, which are insured by the government. When a loan is insured, it means that the lender is protected against the risk of borrower default. In the case of FHA loans, the government provides this insurance, making it easier for lenders to offer favorable mortgage terms to borrowers, particularly those with lower credit scores or limited financial resources. This insurance allows borrowers to access financing with lower down payments and more lenient credit requirements.

VA loans, while also government-backed, are guaranteed rather than insured. This distinction is important because it affects how lenders approach risk and borrower eligibility. Fannie Mae and Freddie Mac are government-sponsored enterprises that do not provide direct loans but rather purchase mortgages from lenders, providing liquidity to the housing market. Their role enhances the stability of the housing finance system but they do not offer insurance on loans. Understanding these distinctions clarifies why FHA is identified as the insured loan among the options.