Which of the following is a key benefit of a VA loan for eligible veterans and service members?
Correct Answer
A) No down payment is required, allowing 100% financing of the purchase price
VA loans offer eligible veterans, active-duty service members, and surviving spouses 100% financing, meaning no down payment is required. However, closing costs and a VA funding fee may still apply. VA loans are guaranteed (not insured) by the U.S. Department of Veterans Affairs, which reduces lender risk and typically results in competitive interest rates.
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Related Topics & Key Terms
Related Topics:
Key Terms:
Related Concepts
A trustee sale is a type of foreclosure where a trustee, appointed under a deed of trust, sells the property at auction to satisfy the debt.
Usury is the practice of charging an interest rate that exceeds the maximum rate permitted by state law. Usury laws protect borrowers from excessive interest charges on loans.
A VA loan is a mortgage guaranteed by the Department of Veterans Affairs available to eligible veterans, active-duty service members, and surviving spouses. It offers no down payment and no private mortgage insurance requirements.
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