Which type of mortgage is typically available to veterans with no required down payment?

Which type of mortgage is typically available to veterans with no required down payment?

• A. FHA loan
• B. VA loan
• C. Conventional conforming loan
• D. Adjustable-rate mortgage

Answer: (B)

The main idea is that veterans have access to a loan option that often requires no down payment. Loans guaranteed by the Department of Veterans Affairs let eligible veterans purchase a home with little or no upfront cash, and they typically don’t require private mortgage insurance. This is possible because the VA backs the loan, reducing the lender’s risk. There is a funding fee that can be financed, and there are eligibility rules and loan limits that vary by location. In contrast, other common loan types generally require some down payment or additional costs: FHA loans usually need a down payment (around 3.5%) and include mortgage insurance; conventional conforming loans typically require a down payment (often 5% or more) with PMI if the down payment is small; and an adjustable-rate mortgage refers to how the interest rate changes over time rather than the down payment requirement. So the option that best matches “no required down payment for veterans” is the VA loan.

The main idea is that veterans have access to a loan option that often requires no down payment. Loans guaranteed by the Department of Veterans Affairs let eligible veterans purchase a home with little or no upfront cash, and they typically don’t require private mortgage insurance. This is possible because the VA backs the loan, reducing the lender’s risk. There is a funding fee that can be financed, and there are eligibility rules and loan limits that vary by location.

In contrast, other common loan types generally require some down payment or additional costs: FHA loans usually need a down payment (around 3.5%) and include mortgage insurance; conventional conforming loans typically require a down payment (often 5% or more) with PMI if the down payment is small; and an adjustable-rate mortgage refers to how the interest rate changes over time rather than the down payment requirement. So the option that best matches “no required down payment for veterans” is the VA loan.