Which of the following is a characteristic of a VA loan?

A VA loan, or Veterans Affairs loan, is specifically designed to help eligible veterans and active-duty service members purchase homes with favorable terms. One of the notable characteristics of a VA loan is that it does not require a down payment. This feature is particularly beneficial for qualified borrowers as it allows them to acquire a home without the burden of saving for a substantial upfront payment, making homeownership more accessible.

The absence of a down payment is complemented by other advantages such as competitive interest rates and no requirement for private mortgage insurance (PMI), which further reduces monthly costs. Thus, the provision of no down payment aligns seamlessly with the VA loan's purpose of easing financial barriers for veterans and servicemembers.

In contrast, other options do not accurately represent the features of a VA loan. Typically, VA loans tend to have interest rates that are comparable to or sometimes lower than those of conventional loans, and they definitely do not require private mortgage insurance. Additionally, VA loans are not limited only to first-time homebuyers; they can be utilized by veterans and active military members for subsequent home purchases as well.