Which of the following is true of VA loans?

The assertion that the lender can require a down payment on VA loans is accurate because while VA loans are designed to help veterans obtain financing without a down payment in many cases, lenders have the discretion to require a down payment under certain circumstances. These may include factors like the borrower's creditworthiness, the amount being financed, or specific lender policies. It's important to note that VA loans offer significant advantages, such as no down payment and no private mortgage insurance (PMI), but they do not eliminate the potential for a lender to impose a down payment requirement based on their underwriting criteria or the loan amount exceeding certain limits.

In contrast, the other statements do not align with the general characteristics of VA loans. VA loans do not require borrowers to have perfect credit; instead, they typically allow for a wider range of credit profiles. Additionally, interest rates on VA loans are generally competitive and may even be lower than those for conventional loans, so the assertion about always having higher rates is inaccurate. Lastly, the VA does not set a minimum loan amount for VA loans, although there may be maximum limits depending on the county and the borrower's eligibility for benefits. These factors highlight the flexibility and benefits associated with VA loans for eligible veterans and active service members.