Carlos is an eligible Veteran shopping for a primary residence. Which statement describes a core feature of a VA-backed purchase loan?
Correct Answer
B) It is guaranteed in part by the VA and generally does not require PMI
A VA-backed purchase loan is made by a private lender, but the VA guarantees a portion of the loan to reduce lender risk. A major borrower-facing benefit is that VA purchase loans generally do not require private mortgage insurance.
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