Which type of loan generally offers 100% financing for a home purchase?

The type of loan that typically offers 100% financing for a home purchase is the VA loan. This loan program is specifically designed for eligible veterans, active-duty service members, and some surviving spouses. One of the standout features of a VA loan is that it does not require a down payment, allowing qualified borrowers to finance the entire purchase price of a home. In addition to the lack of a down payment, VA loans also come with favorable terms, such as competitive interest rates and no private mortgage insurance (PMI) requirement, making them a popular choice among eligible borrowers.

While FHA loans offer low down payment options, they typically require at least 3.5% down, so they do not provide 100% financing. Conventional loans often require a minimum down payment as well, which can vary based on the lender and borrower qualifications. USDA loans are designed for rural property purchases and may offer no down payment in some cases, but they are not universally applicable like VA loans. Hence, when considering options for 100% financing, VA loans stand out as the primary choice for those who qualify.