Which of the following is NOT a common type of loan for residential properties?

The choice of reverse mortgages as the answer highlights an important distinction between typical loan types designed for purchasing or refinancing residential properties and those with different purposes. FHA loans, VA loans, and USDA loans are all primarily geared toward facilitating the purchase of homes, making them common choices for prospective homebuyers.

FHA loans, insured by the Federal Housing Administration, are widely accessible and often serve first-time buyers or those with less-than-perfect credit, allowing for lower down payments. VA loans are backed by the Department of Veterans Affairs and are specifically for veterans and active-duty military personnel, offering favorable terms like no down payment and no private mortgage insurance. USDA loans are aimed at rural property buyers and provide loans for low to moderate-income individuals, promoting homeownership in rural areas.

In contrast, reverse mortgages are designed primarily for older homeowners, typically aged 62 and above, who want to convert part of their home equity into cash. This loan option is not typically used for purchasing a home but rather for enabling seniors to access funds while continuing to live in their properties. Thus, while reverse mortgages are a legitimate loan product, they serve a different purpose than the other types listed, making it the correct answer regarding loans that are not common for residential property purchasing.