I agree with PaigeMiller regarding ‘not knowing’ the true intentions of the original poster. My original response was just pointing out that one can run factor analysis in the presence of binary or ordinal variables instead of having all continuous. As pointed out by AA1973, SAS does have some limitations in this area. Muthen (1978) and Muthen et al (1997) provides a discussion on factor analysis models with binary data using a robust weighted least squares estimator.
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