Accredited Mortgage Professional Exam Practice 2025 – Complete Study Guide

A VA loan is designed specifically for eligible veterans and active-duty service members, offering benefits that include the possibility of financing 100% of the home's value, meaning there is no requirement for a down payment. This feature is particularly beneficial because it allows qualified borrowers to access homeownership without the financial barrier that a down payment often represents. The VA loan program aims to support those who have served in the military by making homeownership more attainable.

In contrast, FHA loans, while they do have low down payment options, typically require a minimum down payment of 3.5%. Conventional loans generally require a down payment ranging from 3% to 20% depending on the lender and the borrower's qualifications. Jumbo loans, which exceed the conforming loan limits set by Fannie Mae and Freddie Mac, often require a larger down payment and are subject to more stringent credit assessments. Thus, the VA loan stands out in its unique provision of no down payment requirement for qualifying borrowers.