What type of mortgage typically requires no down payment?

A VA loan typically requires no down payment, making it a suitable option for eligible veterans and active-duty service members. One of the key features of VA loans is their backing by the U.S. Department of Veterans Affairs, which enables lenders to offer these loans with favorable terms, including no down payment requirement. This can be particularly beneficial for military personnel who may find it challenging to save for a down payment while serving.

In contrast, conventional mortgages generally require a down payment, which can vary based on the lender and the borrower's creditworthiness. FHA loans also require a down payment, albeit a lower one than conventional loans, often around 3.5%. Jumbo loans, which are loans that exceed the conforming loan limits set by the Federal Housing Finance Agency, also necessitate a down payment, typically ranging from 10% to 20% of the purchase price.

Thus, the absence of a down payment requirement in VA loans distinguishes them from these other types of mortgages, making the option for eligible applicants particularly advantageous.