Finance
Which of the following is a key benefit of VA financing compared to conventional loans?
AVA loans require a 10% down payment
BVA loans have lower maximum loan limits than conventional loans
CVA loans require no down payment and no private mortgage insurance (PMI)✓ Correct
DVA loans are only available for first-time homebuyers
Explanation
A major advantage of VA loans is that eligible veterans can purchase a home with no down payment and are not required to pay PMI. The VA guaranty reduces lender risk without requiring PMI from the borrower.
Related California Finance Questions
- Under TRID rules, which document must a lender provide to a borrower within 3 business days of receiving a completed loan application?
- What does 'points' mean in mortgage financing?
- What is 'seller financing' (owner carry-back)?
- A deed of trust in California involves three parties. Who are they?
- California is primarily a 'lien theory' or 'title theory' state for mortgages?
- Which document provides a borrower with a standardized breakdown of estimated closing costs within 3 business days of a loan application?
- What is an adjustable-rate mortgage (ARM)?
- What is a 'reverse mortgage' and who is it designed for?
Practice More California Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free California Quiz →