Final answer:
The trigger term among the options listed is 'Nothing down'. Trigger terms are phrases that imply attractive financing terms and may invoke additional disclosure requirements. 'VA loan' and 'FHA loan' are government-backed mortgage loans and not trigger terms.
Step-by-step explanation:
The term that is considered a trigger term is 'Nothing down'. Trigger terms are specific phrases used in the advertising of financing offers that indicate to potential customers the availability of credit terms that might be beneficial, like no down payment or easy credit qualification. They are common in the context of home loans and other types of consumer finance. In the realm of lending, a trigger term is any phrase or term that could trigger additional disclosure requirements under the Truth in Lending Act (TILA). 'Nothing down' refers to the offer of a loan without the need for an initial down payment, which is typically attractive to borrowers but can imply higher risk for lenders.
When discussing subprime loans, examples of trigger terms also include 'easy qualifying' and 'low down-payment', which are characteristics of subprime lending practices. Subprime loans are often extended to borrowers with poor credit histories or those with No Income, No Job, or Assets (NINJA loans). The willingness of banks to make these risky loans was influenced by the possibility of selling the loans through securitization, sometimes with little regard for the borrower's ability to repay.
'VA loan' and 'FHA loan' are types of government-backed mortgage loans and are not considered trigger terms in this context.