Finance
A VA (Veterans Affairs) home loan benefit available to qualifying Virginia veterans includes:
ABelow-market interest rates set by VA
BNo required down payment and no private mortgage insurance (PMI)✓ Correct
CA grant (not a loan) for first-time buyers
DGuaranteed closing cost assistance up to $5,000
Explanation
VA loans allow eligible veterans to purchase homes with no down payment and no private mortgage insurance (PMI). The VA guarantees a portion of the loan, allowing lenders to offer favorable terms.
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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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