Which statement about VA-guaranteed loans is false?

The statement regarding the requirement of a 3.5% minimum down payment for VA-guaranteed loans is false because VA loans typically do not require a down payment at all for eligible borrowers. This feature makes VA loans particularly appealing to veterans and active-duty service members, as it allows them to finance 100% of the home’s purchase price without the burden of a down payment.

The other statements highlight important aspects of VA loans: the property must be owner-occupied, meaning the borrower intends to live in the home as their primary residence, which is a specific requirement for VA financing. Additionally, there is no maximum loan amount for VA loans, although there are limits on how much the VA will guarantee, affecting borrowers who may want to avoid paying a down payment. Lastly, VA loans do not require private mortgage insurance (PMI), which is a significant cost savings compared to conventional loans where PMI is often mandated if the down payment is less than 20%.