What types of loans are commonly used in real estate financing?

The correct choice focuses on the most relevant types of loans used specifically in the context of real estate financing. Fixed-rate mortgages provide borrowers with consistent monthly payments over the life of the loan, which allows for better budgeting and planning. Adjustable-rate mortgages (ARMs) initially offer lower interest rates that can adjust after a set period, allowing access to potentially lower monthly payments at the start. Government-backed loans, like FHA and VA loans, enhance accessibility for borrowers who may not qualify for conventional loans, thereby supporting homeownership for a wider range of individuals.

Other options include items that are unrelated or less relevant to real estate financing. For example, credit cards and personal loans do not directly impact mortgage financing and are generally not used to fund real estate purchases or investments. Similarly, car loans and student loans deal with entirely different asset types and purposes. Understanding these distinctions clarifies why the selected answer accurately represents the primary financing tools involved in real estate transactions.