Finance
A VA loan guarantee benefits the veteran borrower primarily by:
AEliminating the need to make any monthly payments for the first year
BAllowing purchase with no down payment and no PMI requirement✓ Correct
CProviding a below-market interest rate set by the VA
DGuaranteeing the property will appraise at the purchase price
Explanation
VA loans allow eligible veterans to purchase with zero down payment and without PMI. The VA guarantees a portion of the loan, reducing lender risk.
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