Finance
VA loans for eligible South Dakota veterans offer which significant advantage?
ANo maximum loan amount ever
B100% financing (no down payment) with no PMI requirement✓ Correct
CInterest rates below the federal funds rate
DAutomatic approval without income verification
Explanation
VA loans offer eligible veterans 100% financing (no down payment required) and no private mortgage insurance (PMI) requirement, making homeownership more accessible for veterans.
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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.
Discount PointsPrepaid interest paid to a lender at closing to reduce the mortgage interest rate, with each point equal to 1% of the loan amount.
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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