Which government-backed loan program requires no down payment for qualified veterans and has no PMI?

Which government-backed loan program requires no down payment for qualified veterans and has no PMI?

• A. VA
• B. FHA
• C. USDA
• D. Conventional

Answer: (A)

A VA loan is designed for eligible veterans and their families and is backed by the Department of Veterans Affairs. Because it’s government-guaranteed, lenders can offer zero down payment to qualified buyers and do not require private mortgage insurance. Instead, there is typically a VA funding fee (sometimes waived or financed into the loan) rather than PMI. This combination—no down payment for veterans and no PMI—is a hallmark of the VA program. Other government-backed options may require a down payment or include some form of mortgage insurance, so they don’t fit both conditions as cleanly.

A VA loan is designed for eligible veterans and their families and is backed by the Department of Veterans Affairs. Because it’s government-guaranteed, lenders can offer zero down payment to qualified buyers and do not require private mortgage insurance. Instead, there is typically a VA funding fee (sometimes waived or financed into the loan) rather than PMI. This combination—no down payment for veterans and no PMI—is a hallmark of the VA program. Other government-backed options may require a down payment or include some form of mortgage insurance, so they don’t fit both conditions as cleanly.