To obtain a 100% loan with no down payment, the most likely loan type would be which?

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Study for the Washington Real Estate Fundamentals Rockwell Exam. Utilize flashcards, multiple choice questions with hints and explanations. Prepare thoroughly for your real estate career!

Multiple Choice

To obtain a 100% loan with no down payment, the most likely loan type would be which?

Explanation:
The ability to purchase with no down payment mainly comes from loan programs designed to assist certain groups, and among common options, the VA loan is the one that typically allows 100% financing for eligible borrowers. A VA loan, guaranteed by the Department of Veterans Affairs, lets qualified veterans and active-duty service members buy a home with no down payment, and it usually doesn’t require private mortgage insurance. There are costs like a VA funding fee (which can be financed), but the absence of a down payment is the standout benefit. In contrast, an FHA loan requires a down payment (typically around 3.5%), a conventional loan generally requires some down payment (often 3% or more), and an adjustable-rate loan refers to how the interest rate changes over time rather than to down payment requirements.

The ability to purchase with no down payment mainly comes from loan programs designed to assist certain groups, and among common options, the VA loan is the one that typically allows 100% financing for eligible borrowers. A VA loan, guaranteed by the Department of Veterans Affairs, lets qualified veterans and active-duty service members buy a home with no down payment, and it usually doesn’t require private mortgage insurance. There are costs like a VA funding fee (which can be financed), but the absence of a down payment is the standout benefit.

In contrast, an FHA loan requires a down payment (typically around 3.5%), a conventional loan generally requires some down payment (often 3% or more), and an adjustable-rate loan refers to how the interest rate changes over time rather than to down payment requirements.

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