Which of the following cannot be purchased with FHA loans?

FHA loans are designed to assist borrowers with lower credit scores and smaller down payments in obtaining financing for their primary residences. The key element of FHA loans is that they can only be used for properties that serve as the borrower's primary home.

A vacation home does not qualify as a primary residence, as it is typically used for leisure and not as a place where the borrower resides full-time. The primary purpose of FHA loans is to improve homeownership rates by making it easier for individuals to buy homes where they will live permanently.

In contrast, the other options provided—condominiums, manufactured homes, and the purchase of land to build a home—are all eligible under certain conditions. FHA financing can be utilized to buy condominiums that are approved by the FHA, as well as manufactured homes that meet prescribed guidelines. Additionally, FHA loans can be used to purchase land for building a home, provided the borrower intends to live in the home as their primary residence once completed. Thus, the correct response highlights the limitation of FHA loans in relation to non-primary residences.