Which of the following is a characteristic of a government-backed loan?

A government-backed loan is designed to make homeownership more accessible, especially for those who may have less than perfect credit or limited financial resources. One of the primary features of these loans, such as those offered through programs by the FHA, VA, or USDA, is that they typically provide better interest rates to qualifying borrowers. This is because the government backs these loans, which reduces the lender's risk. Consequently, lenders can offer more favorable terms, including lower interest rates.

The option about requiring a high down payment is not aligned with the nature of government-backed loans, which often allow for lower or even no down payment in certain cases. The assertion that these loans are exclusively available for first-time homebuyers is also incorrect, as they can be accessed by repeat buyers as well. Lastly, government-backed loans frequently allow for closing costs to be included in the financing, contrary to the idea that they cannot cover those costs. Overall, the characteristic of providing better interest rates to qualifying borrowers encapsulates the goal of these programs to make housing more attainable.