Florida Real Estate Sales Associate Examination Content OutlineReal Estate FinanceEasy
A real estate agent is assisting a buyer who is considering a VA loan. Which of the following statements accurately describes a key benefit of a VA loan for an eligible veteran?
- AVA loans are available to any first-time homebuyer.
- BVA loans require a minimum 5% down payment.
- CVA loans typically do not require a down payment.
- DVA loans are insured by the Department of Veterans Affairs.
Show answer & explanationAnswer & explanation
Correct answer: C. VA loans typically do not require a down payment.
A significant benefit of a VA loan for eligible veterans is that they typically do not require a down payment. This makes homeownership more accessible for those who have served.
Why the other options are wrong
- A. VA loans are specifically for eligible service members, veterans, and their surviving spouses, not all first-time homebuyers.
- B. VA loans typically do not require a down payment, making this statement incorrect.
- D. VA loans are guaranteed, not insured, by the Department of Veterans Affairs. FHA loans are insured.
VA Loan
A mortgage loan guaranteed by the U.S. Department of Veterans Affairs (VA) to eligible veterans, service members, and surviving spouses.
- No down payment typically required
- No private mortgage insurance (PMI)
- Competitive interest rates
- Funding fee usually required (can be waived for some)
Memory trick: VA offers 'Veteran's Advantage' of no cash down.