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National Real Estate Exam (PSI)FinancingEasy

A qualified veteran wants to purchase a home using a VA-guaranteed loan. What is a key advantage of this loan program compared to a conventional loan?

  1. AIt allows the buyer to skip the appraisal process
  2. BIt allows financing with no down payment for qualified borrowers
  3. CIt guarantees approval regardless of income
  4. DIt eliminates the need for a credit check
Show answer & explanation

Correct answer: B. It allows financing with no down payment for qualified borrowers

One of the primary benefits of a VA-guaranteed loan is that eligible veterans can often finance 100% of the purchase price with no down payment required.

Why the other options are wrong

  • A. VA loans require an appraisal to establish the property's value.
  • C. Income and debt ratios are still assessed for VA loan approval.
  • D. Lenders still evaluate creditworthiness for VA loans.

VA Loan Benefit

A VA-guaranteed loan allows eligible veterans to purchase a home with no down payment, backed by a government guarantee to the lender.

  • Guaranteed by the Department of Veterans Affairs
  • No down payment typically required for qualified veterans
  • Funding fee applies unless exempt (e.g., disability)

Memory trick: Veterans get to walk in the door with zero down.

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