Alabama Real Estate Practice Exam

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Prepare for the Alabama Real Estate Exam. Utilize flashcards and multiple-choice questions, each coupled with hints and explanations. Ace your upcoming test!

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Is a down payment generally required for a VA-insured loan?

Yes
No
Only if over $417,000
Only if under $104,500

The correct answer is: No

A VA-insured loan, also known as a VA-guaranteed loan, is a type of mortgage loan provided by private lenders and partially backed or guaranteed by the Department of Veterans Affairs. Unlike conventional loans, VA loans do not require a down payment, meaning that eligible veterans and service members can finance 100% of the home's purchase price. The other options provided are incorrect because they suggest that a down payment may be required for a VA loan, which is not the case. Option C mentions a specific loan limit, but this does not impact the down payment requirement. Option D mentions a specific loan amount, but this also does not determine the down payment requirement for a VA loan. Option A is simply a generalization and is not true for VA loans. Therefore, the correct answer is B.