Which type of loan does not require a down payment?

A VA Loan is designed specifically for eligible veterans, active duty service members, and certain members of the National Guard and Reserves. One of the primary benefits of a VA Loan is that it typically does not require a down payment, making it easier for veterans to purchase a home without needing to save up a significant amount of money upfront. This feature is intended to assist those who have served in the military and remove barriers to home ownership, promoting housing access for veterans.

In contrast, FHA Loans generally require a minimum down payment, which is usually around 3.5% for borrowers with a credit score of 580 or higher. Conventional Loans typically require a down payment ranging from 3% to 20%, depending on various factors such as the borrower's creditworthiness and the lender's requirements. The term "Usual Loan" does not refer to any specific type of loan commonly recognized in the housing market. Therefore, the lack of a required down payment is a significant distinguishing feature of the VA Loan, making it the correct choice.