Which loan type commonly offers the possibility of no down payment?

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Multiple Choice

Which loan type commonly offers the possibility of no down payment?

Explanation:
Zero down payment is a hallmark feature of a VA loan. This option is available to eligible veterans, active-duty service members, and certain surviving spouses, and the loan is guaranteed by the Department of Veterans Affairs. That guarantee lets lenders approve a loan without a down payment and often without private mortgage insurance. A funding fee may apply, but it doesn’t replace the PMI that other programs require. FHA loans require a down payment, typically around 3.5% for many borrowers. Conventional loans usually need a down payment as well, often 3%–5% or more depending on credit and program. USDA loans can also be zero down, but they’re limited to qualifying rural or suburban areas and come with income and geographic restrictions. Because of its broad eligibility and no-down-payment feature for many borrowers, the VA loan is the option most commonly associated with buying with no down payment.

Zero down payment is a hallmark feature of a VA loan. This option is available to eligible veterans, active-duty service members, and certain surviving spouses, and the loan is guaranteed by the Department of Veterans Affairs. That guarantee lets lenders approve a loan without a down payment and often without private mortgage insurance. A funding fee may apply, but it doesn’t replace the PMI that other programs require.

FHA loans require a down payment, typically around 3.5% for many borrowers. Conventional loans usually need a down payment as well, often 3%–5% or more depending on credit and program. USDA loans can also be zero down, but they’re limited to qualifying rural or suburban areas and come with income and geographic restrictions. Because of its broad eligibility and no-down-payment feature for many borrowers, the VA loan is the option most commonly associated with buying with no down payment.

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