Final answer:
The borrower's loan type is likely a B) VA loan.
Step-by-step explanation:
The borrower bought a $174,000 house with no down payment. Based on the given information, the possible loan type is a VA loan (Option B). A VA loan is a type of mortgage loan that is guaranteed by the U.S. Department of Veterans Affairs and is available to eligible veterans, active-duty service members, and surviving spouses.
It is important to note that without additional information, it is not possible to determine the exact loan type. Other possibilities such as FHA loans and conventional loans with mortgage insurance are not directly applicable based on the given context.