Alabama Real Estate Practice Exam

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.