VA and FHA loans require all of the following except:

• A. A down payment from the borrower
• B. The property to be used as the borrower's primary residence
• C. An appraisal of the property
• D. Proof of the borrower's ability to repay

Answer: (A)

Verified step by step guidance

1. Step 1: Understand the context of VA (Veterans Affairs) and FHA (Federal Housing Administration) loans. These are government-backed loans designed to help individuals purchase homes, often with more lenient requirements compared to conventional loans.
2. Step 2: Review the typical requirements for VA and FHA loans. These include: the property being used as the borrower's primary residence, an appraisal of the property to determine its value, and proof of the borrower's ability to repay the loan.
3. Step 3: Identify the exception in the list provided. VA loans, in particular, often do not require a down payment from the borrower, which is a key distinguishing feature compared to other loan types.
4. Step 4: Compare the listed options against the requirements for VA and FHA loans. The option 'A down payment from the borrower' stands out as the exception because VA loans typically do not require a down payment, and FHA loans may require a smaller down payment compared to conventional loans.
5. Step 5: Conclude that the correct answer is the option that does not align with the standard requirements of VA and FHA loans, which is 'A down payment from the borrower.'