Finance
In NJ, a homebuyer using a VA loan is entitled to which unique benefit?
ANo appraisal required
BNo down payment required (for eligible borrowers) and no private mortgage insurance✓ Correct
CInterest rates set by the VA below market
DUnlimited loan amounts
Explanation
VA loans allow eligible veterans and service members to purchase a home with no down payment and without private mortgage insurance (PMI), significantly reducing upfront and ongoing costs compared to conventional loans.
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Key Terms to Know
Private Mortgage Insurance (PMI)
Insurance required by lenders on conventional loans with less than 20% down payment, protecting the lender — not the borrower — against default.
AppraisalA professional estimate of a property's market value prepared by a licensed or certified appraiser.
AmortizationThe gradual repayment of a loan through scheduled periodic payments that cover both principal and interest.
Adjustable-Rate Mortgage (ARM)A mortgage with an interest rate that changes periodically based on a financial index, usually after an initial fixed-rate period.
Math Concepts
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