Which of the following best describes a VA mortgage?

A VA mortgage, or Veterans Affairs mortgage, is specifically designed to assist eligible veterans, active-duty service members, and certain members of the National Guard and Reserves in purchasing homes. One of the standout features of a VA mortgage is that it does not require a down payment for qualified applicants. This makes it incredibly beneficial for veterans who may have limited savings for a down payment, allowing them to access homeownership that they might otherwise find difficult to achieve.

The VA mortgage program also provides other advantages, such as competitive interest rates and no requirement for private mortgage insurance (PMI), which further reduces the monthly financial burden for borrowers. However, the absence of a down payment is a key characteristic that distinguishes VA loans from traditional mortgages, where a substantial down payment is often necessary.

This option specifically highlights the unique benefit of a VA mortgage, making it the best descriptor among the available choices. The other options mention features not applicable to a VA mortgage, such as being exclusively for retired military personnel or implying that the loan carries no interest, which is inaccurate.