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What is an advantage of a VA loan compared to a traditional mortgage?

A) Lower interest rates
B) No down payment required
C) Longer loan terms
D) No income verification required

1 Answer

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Final answer:

A VA loan's key advantage over traditional mortgages is that it does not require a down payment, enabling veterans to become homeowners without upfront capital.

Step-by-step explanation:

An advantage of a VA loan compared to a traditional mortgage is B) No down payment required. VA loans offer significant benefits for veterans and active service members, including the option to purchase a home without a down payment. This is a stark contrast to conventional loans, where a significant down payment is typically required, often around 20%, or lower amounts which then necessitate the additional cost of mortgage insurance. VA loans can permit 100% financing of the home's value, which facilitates homeownership for those who have served our country but might not have the funds for a down payment at the time of purchase.

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