Which of the following is true about a VA loan?

A VA loan, or Veterans Administration loan, is specifically designed to assist eligible veterans and active-duty service members in obtaining financing for a home. This benefit is part of the support system established by the government to honor those who have served in the military.

The key characteristic of a VA loan is that it does not require a down payment, which distinguishes it from many conventional loans that typically require a minimum down payment. Additionally, VA loans do not have a mandatory pay-off period of five years; in fact, they often have terms that can extend up to 30 years. They are also not restricted to new constructions, as eligible veterans can use VA loans to purchase existing homes, making them a versatile option.

Thus, the correctness of the answer lies in its accurate representation of the eligibility criteria for VA loans, underscoring their accessibility for those who have served in the military.