Which type of loan typically does not require a down payment?

The VA loan 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 benefits of a VA loan is that it does not require a down payment, making homeownership more accessible for those who have served in the military. This feature is particularly advantageous, as it allows qualified borrowers to finance the entire purchase price of the home without the need for any upfront cash, thereby reducing the barriers to homeownership.

In contrast, conventional loans often require a down payment, which can range from 3% to 20%, depending on the lender and the borrower's creditworthiness. FHA loans typically require a minimum down payment, usually around 3.5% of the purchase price. Fixed-rate loans refer to a type of mortgage structure where the interest rate remains the same throughout the life of the loan, but they can be associated with both conventional and FHA loans that have their own down payment requirements. Thus, the VA loan stands out for its no-down-payment feature, making it the correct choice in this scenario.