Which mortgage loan program often requires little or no down payment?

The VA Loan program is specifically designed to provide financial assistance and benefits to veterans, active-duty service members, and certain members of the National Guard and Reserves. One of the key features of a VA Loan is the ability to secure a mortgage with little or no down payment, making homeownership more accessible for those who have served in the military. This benefit eliminates a significant barrier to home buying, allowing veterans to purchase homes without the need for substantial upfront capital.

Furthermore, VA loans do not require private mortgage insurance (PMI), which further reduces monthly costs for borrowers. This makes VA Loans an attractive option for qualifying individuals who may not have the savings for a large down payment or want to preserve their savings for other expenses.

In contrast, other loan types like FHA Loans typically require a minimum down payment, and Conventional Loans often require a down payment ranging from 3% to 20%, depending on the borrower's creditworthiness. Jumbo Loans cater to higher-value properties and do not have government backing, often requiring larger down payments and stricter qualification standards. Therefore, the unique structure of the VA Loan program, focusing on supporting veterans, distinctly enables the possibility of purchasing a home with minimal or no down payment.