Which of the following loans is generally characterized as being secured by government backing?

The correct answer is FHA loan, which is characterized by its backing from the Federal Housing Administration (FHA). This government-backed loan program is designed to help lower-income and first-time homebuyers secure financing. The government backing means that the FHA provides insurance to lenders against the risk of default, which allows them to offer more favorable terms, such as lower down payments and more lenient credit requirements.

In contrast, conventional loans are not backed by any government entity and typically require higher credit scores and larger down payments. Home equity loans, while often tied to the value of the homeowner's property, are unsecured by government programs. Similarly, commercial loans are used to finance income-producing properties and are not backed by government securities like FHA loans. Therefore, the FHA loan distinctively stands out as a loan type secured by government backing, primarily aimed at aiding homebuyers in accessing affordable housing.