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The most common type of FHA loan is the 203(b) loan, primarily because it is designed for a broad range of homebuyers. The 203(b) loan program is established to support borrowers in obtaining financing for purchasing a home, whether as a primary residence or an investment property. It facilitates low down payments, making it accessible for first-time homebuyers, and supports various income levels. The 203(b) program typically allows for lower credit scores compared to conventional loans, enhancing its appeal to a diverse array of applicants seeking affordable housing options.

In contrast, the 203(k) loan is specifically aimed at homebuyers interested in purchasing and rehabilitating a property, and while it has its significance, its niche focus limits its overall prevalence compared to the straightforward 203(b) option. The Home Equity Conversion Mortgage is a reverse mortgage product tailored for seniors, and while it serves a vital role, it does not cater to the general market in the same way. The Energy Efficient Mortgage is targeted at improving energy efficiency in homes, which is beneficial but is also less commonly utilized than the foundational and widely applicable 203(b) loan. Therefore, the 203(b) loan represents the most common FHA loan type due to its broad applicability and accessibility for