Real Estate Glossary

Real estate glossary with terms and definitions:

• Adjustable-Rate Mortgage (ARM)
  • A mortgage that has an interest rate that changes periodically, according to fluctuations in an index.
• Amortization
  • The duration of time during which the monthly mortgage payment consisted of principal is paid off.
• Amortization Schedule
  • A table which shows how much of each payment will be applied toward principal and how much toward interest over the life of the loan. It also shows the gradual decrease of the loan balance until it reaches zero.
• Annual Percentage Rate (APR)
  • The APR is not the interest rate of your loan, it is always higher. It is calculated in order to reflect the true annual cost of borrowing the loan, shown as a percentage. It is created according to a Government formula.
• Application
  • The application is used by a mortgage loan officer as you apply for a mortgage to collect pertinent information, such as your income, savings, assets, liabilities, etc.
• Appraisal
  • A written analysis and justification of the price for a property, calculated by a licensed Appraiser based on recent sales of similar homes nearby.
• Appraised value
  • The opinion of value of the Appraiser based on their knowledge, experience, and market analysis of a property.
• Appraiser
  • A licensed and qualified individual who undergoes education and training to estimate the value of real and personal property. Sometimes they work directly for mortgage lenders, however, most are independent.
• Appreciation
  • The increase in the value of a property due to changes in market conditions, inflation, or other causes.
• Assessed Value
  • The valuation placed on property by a public tax assessor for purposes of taxation. For an explanation of how Arlington Assessed Values are calculated, click here.
• Asset
  • Items of value owned by an individual.
• Assumable Mortgage
  • A mortgage that can be assumed by the buyer when a home is sold. Usually, the borrower must “qualify” in order to assume the loan.

• Balloon Mortgage
  • A mortgage loan that requires the remaining principal balance be paid at a specific point in time.
• Bankruptcy
  • There are various types of Bankruptcies, however, the most common type for an individual relieves the borrower of most types of debts.
• Boutique Condo
  • I think many agents will have varying opinions on what a boutique condo building is, depending on what part of the country they work in. Read my definition of a boutique condo building for the DC Metro area here.
• Bridge Loan
  • Bridge loans are obtained by those who have not yet sold their previous property, but must close on a purchase property. The bridge loan becomes the source of their funds for the down payment.
• Broker (Agent)
  • Most real estate agents work under a “broker.” Some agents are brokers as well, either working form themselves or under another broker.
• Broker (Lender)
  • In the mortgage industry, “Mortgage Broker”  usually refers to a company or individual that does not lend the money for the loans themselves, but brokers loans to larger lenders or investors.

• Cash-Out Refinance
  • When a borrower refinances his mortgage at a higher amount than the current loan balance with the intention of pulling out money for personal use.
• Certificate of Eligibility
  • A document issued by the Veterans Administration that certifies a veteran’s eligibility for a VA loan.
• Certificate of Reasonable Value (CRV)
  • Once the appraisal has been performed on a property being bought with a VA loan, the Veterans Administration issues a CRV.
• Chain of Title
  • An analysis of the transfers of title to a piece of property over the years.
• Clear Title
  • A title that is free of liens or legal questions as to ownership of the property; we refer to this as “insurable” and “marketable” title.
• Closing
  • Closing, or Settlement, is the day where all of the documents are signed, money changes hands, and keys are delivered to the purchaser.
• Closing Costs
  • Charges paid at closing as part of the process of buying and selling real estate. There are attorney and title fees, lender fees, commissions, taxes, etc. These are costs occur twice – once when you buy a property, and again when you sell it.
• Co-Borrower
  • A 2nd or additional individual who is on the title to the property and/or mortgage.
• Collateral
  • For real estate and mortgage purposes, the property is the collateral. The borrower risks losing the property if the loan is not repaid according to the terms of the mortgage or deed of trust.
• Collection
  • When a borrower falls behind, the lender contacts them in an effort to bring the loan current. The loan goes to “collection.” As part of the collection effort, the lender must mail and record certain documents in case they are eventually required to foreclose on the property.
• Commission
  • Commissions for real estate agents are paid the day of closing/settlement. *Generally, commissions are paid by the seller.
• Comparable Sales
  • Commonly known as “comps,” these sales are used to help determine market value of a property. Comps generally focus on location, style, age, type of property, condition, etc.
• Condominium
  • A type of ownership in real property where all of the owners own the property, common areas and buildings together, with the exception of the interior of the unit to which they have title. Often mistakenly referred to as a type of construction or development, it actually refers to the type of ownership.
• Condominium Conversion
  • A condo conversion occurs when a previous property, usually rental property, is converted to condominium ownership.
• Construction Loan
  • A short-term, interim loan for financing the cost of construction. The lender makes payments to the builder at periodic intervals as the work progresses.
• Contingency
  • A condition that must be met before a contract is legally binding. In the DC Metro area (for MD/DC/VA), common contingencies include a home inspection, radon, appraisal, financing, lead paint, termite, and a few others.
• Contract
  • To be legally binding, a contract must be in writing. It is a commitment to do or not do something.
• Conventional Mortgage
  • Loans that are not funded by the government(VA and FHA).
• Convertible ARM
  • An adjustable-rate mortgage that allows the borrower to change the ARM to a fixed-rate mortgage within a specific time.
• Cooperative (co-op)
  • A type of multiple ownership in which the residents of a multiunit housing complex own shares in the cooperative corporation that owns the property, giving each resident the right to occupy a specific apartment or unit.
• Cost of Funds Index (COFI)
  • One of the indexes that is used to determine interest rate changes for certain adjustable-rate mortgages. It represents the weighted-average cost of savings, borrowings, and advances of the financial institutions such as banks and savings & loans, in the 11th District of the Federal Home Loan Bank.
• Credit History
  • A record of an individual’s repayment of debt. Individual credit history reports are reviewed by mortgage lenders as one of the underwriting criteria in determining credit risk.
• Credit Report
  • A report of an individual’s credit history prepared by a credit bureau and used by a lender in determining a loan applicant’s creditworthiness.

• Deed
  • The legal document conveying title to a property.
• Deed-in-Lieu
  • Short for “deed in lieu of foreclosure,” this conveys title to the lender when the borrower is in default and wants to avoid foreclosure.
• Deed of Trust
  • The legal instrument that is used to record your mortgage.
• Default
  • Failure to make the mortgage payment within a specified period of time.
• Delinquency
  • Failure to make mortgage payments when mortgage payments are due.
• Deposit
  • Referred to as an “Earnest Money Deposit,” this is an upfront payment, usually 1-3% of the purchase price, as a show of good faith. When a purchaser is in default, this money can be kept by the seller as compensation.
• Depreciation
  • A decline in the value of property.
• Discount Points
  • Points are prepaid interest, paid in a 1-time lump sum at closing. A point is always 1% of the loan amount.
• Down Payment
  • The percentage of the purchase price that the buyer pays in cash at closing, and does not finance with a mortgage.

• Earnest Money Deposit
  • Also referred to as a “Deposit,” this is an upfront payment, usually 1-3% of the purchase price, as a show of good faith. When a purchaser is in default, this money can be kept by the seller as compensation.
• Easement
  • A right of way giving persons other than the owner access to or over a property.
• Eminent Domain
  • The right of a government to take private property for public use upon payment of its fair market value. Eminent domain is the basis for condemnation proceedings.
• Encroachment
  • An improvement that intrudes illegally on another’s property.
• Encumbrance
  • Anything that affects or limits the fee simple title to a property, such as mortgages, leases, easements, or restrictions.
• Equal Credit Opportunity Act (ECOA)
  • A federal law that requires lenders and other creditors to make credit equally available without discrimination based on race, color, religion, national origin, age, sex, marital status, or receipt of income from public assistance programs.
• Equity
  • A homeowner’s financial interest in a property. Equity is the difference between the fair market value of the property and the amount still owed on its mortgage and other liens.
• Escrow
  • An item of value, money, or documents held by a third party to be delivered upon the fulfillment of a condition. The earnest money deposit is put into escrow until delivered to the seller when the transaction is closed.
• Estate
  • The ownership interest of an individual in real property. The sum total of all the real property and personal property owned by an individual at time of death.
• Eviction
  • The lawful expulsion of an occupant from real property.
• Examination of Title
  • The report on the title of a property from the public records or an abstract of the title.
• Exclusive Listing
  • A written contract that gives a licensed real estate agent the exclusive right to sell a property for a specified time.
• Executor
  • A person named in a will to administer an estate. The court will appoint an administrator if no executor is named. “Executrix” is the feminine form.

• Fair Credit Reporting Act
  • A consumer protection law that regulates the disclosure of consumer credit reports by consumer/credit reporting agencies and establishes procedures for correcting mistakes on one’s credit record.
• Fair Market Value
  • What a buyer is willing to pay, and a seller is willing to accept, at any given point, to buy and sell a piece of real estate.
• Fannie Mae (FNMA)
  • The Federal National Mortgage Association, which is a congressionally chartered, shareholder-owned company that is the nation’s largest supplier of home mortgage funds.
• Federal Housing Administration (FHA)
  • An agency of the U.S. Department of Housing and Urban Development (HUD). It’s main activity is the insuring of residential mortgage loans made by private lenders. The FHA sets standards for construction and underwriting but does not lend money or plan or construct housing.
• Fee Simple
  • Absolutely interest and ownership of a real estate property.
• FHA mortgage
  • A mortgage that is insured by the Federal Housing Administration (FHA). Along with VA loans, an FHA loan will often be referred to as a government loan.
• Fixed-Rate Mortgage
  • A mortgage in which the interest rate does not change during the entire term of the loan.
• Fixture
  • Personal property that becomes real property when attached in a permanent manner to real estate.
• Flood Insurance
  • Insurance that compensates for physical property damage resulting from flooding. It is required for properties located in federally designated flood areas.
• Foreclosure
  • The legal process by which a borrower in default under a mortgage is deprived of his or her interest in the mortgaged property. Learn more about the Foreclosure process.

• Government Loan (mortgage)
  • A mortgage that is insured by the Federal Housing Administration (FHA) or guaranteed by the Department of Veterans Affairs (VA) or the Rural Housing Service (RHS). Mortgages that are not government loans are classified as conventional loans.
• Grantee
  • The purchaser in a real estate transaction.
• Grantor
  • The seller in a real estate transaction.

• Hazard Insurance
  • Insurance coverage that in the event of physical damage to a property from fire, wind, vandalism, or other hazards.
• Home Equity Line of Credit
  • A mortgage loan that allows the borrower to obtain cash drawn against the equity of his home, up to a predetermined amount.
• Home Inspection
  • An inspection by a licensed professional that evaluates the structural and mechanical condition of a property.
• Homeowners’ Association
  • A nonprofit association that manages the common areas of a planned unit development (PUD) or condominium project. In a condominium project, it has no ownership interest in the common elements. In a PUD project, it holds title to the common elements.
• Homeowner’s Insurance
  • An insurance policy that combines personal liability insurance and hazard insurance coverage for a dwelling and its contents.
• Homeowner’s Warranty
  • A type of insurance that will cover repairs to certain items, such as heating or air conditioning, should they break down within the coverage period. The buyer often requests the seller to pay for this coverage as a condition of the sale, but either party can pay. Warranties are usually an annual, renewable policy.
• HUD-1 Settlement Statement
  • A document that provides an itemized listing of the funds that were paid at closing. Items that appear on the statement include title search fees, attorney fees, prorated taxes, prorated HOA fees, lender fees, points, and real estate transfer/recordation taxes. Each type of expense goes on a specific numbered line on the sheet. The totals at the bottom of the HUD-1 statement define the seller’s net proceeds and the buyer’s net payment at closing. It is called a HUD1 because the form is printed by the Department of Housing and Urban Development (HUD). The HUD1 statement is also known as the “closing statement” or “settlement sheet.”

• Joint Tenancy
  • A form of ownership or taking title to property, which means each party owns the whole property and that ownership is not separate. In the event of the death of one party, the survivor owns the property in its entirety.
• Judgment
  • A decision made by a court of law. In judgments that require the repayment of a debt, the court may place a lien against the debtor’s real property as collateral for the judgment’s creditor.
• Jumbo Loan
  • A loan that exceeds Fannie Mae’s and Freddie Mac’s loan limits, currently at $729,750 (as of January 1, 2009). Also called a nonconforming loan. Freddie Mac and Fannie Mae loans are referred to as conforming loans.

• Lease
  • A written agreement between the property owner and a tenant that stipulates the payment and conditions under which the tenant may possess the real estate for a specified period of time.
• Leasehold Estate
  • A way of holding title to a property wherein the mortgagor does not actually own the property but rather has a recorded long-term lease on it.
• Lease Option
  • An alternative financing option that allows home buyers to lease a home with an option to buy. Each month’s rent payment may consist of not only the rent, but an additional amount which can be applied toward the down payment on an already specified price.
• Legal Description
  • A property description, recognized by law, that is sufficient to locate and identify the property without oral testimony.
• Lender
  • Often used to describe both the specific loan officer, and the bank or institution actually making the loan.
• Liabilities
  • A person’s financial obligations. Liabilities include long-term and short-term debt, as well as any other amounts that are owed to others.
• Lien
  • A legal claim against a property that must be paid off when the property is sold.
• Line of Credit
  • An agreement by a commercial bank or other financial institution to extend credit up to a certain amount for a certain time to a specified borrower.
• Liquid Asset
  • A cash asset or an asset that is easily converted into cash.
• Loan
  • A sum of borrowed money (principal) that is generally repaid with interest.
• Loan Officer
  • Also referred to by a variety of other terms, such as lender, loan representative, loan “rep,” account executive, and others. The loan officer serves several functions and has various responsibilities: they solicit loans, they are the representative of the lending institution, and they represent the borrower to the lending institution.
• Loan Origination
  • How a lender refers to the process of obtaining new loans.
• Loan Servicing
  • After you obtain a loan, the company you make the payments to is “servicing” your loan.
• Loan-To-Value (LTV)
  • The percentage relationship between the amount of the loan and the appraised value or sales price (whichever is lower).
• Lock (interest rate)
  • An agreement in which the lender guarantees a specified interest rate for a certain amount of time at a certain cost.
• Lock Period
  • The time period during which the lender has guaranteed an interest rate to a borrower.

• Maturity
  • The date on which the principal balance of a loan, bond, or other financial instrument becomes due and payable.
• Modification
  • Occurs when a lender will agree to modify the terms of your mortgage without requiring you to refinance. If any changes are made, it is called a modification.
• Mortgage
  • A legal document that pledges a property to the lender as security for payment of a debt.
• Mortgage Banker
  • Generally assumed to originate and fund their own loans, which are then sold on the secondary market, usually to Fannie Mae, Freddie Mac, or Ginnie Mae. However, firms rather loosely apply this term to themselves, whether they are true mortgage bankers or simply mortgage brokers or correspondents.
• Mortgage Broker
  • A mortgage company that originates loans, then places those loans with a variety of other lending institutions with whom they usually have pre-established relationships.
• Mortgagee
  • The lender in a mortgage agreement.
• Mortgage Insurance (MI)
  • Insurance that covers the lender against some of the losses incurred as a result of a default on a home loan. Often mistakenly referred to as PMI, which is actually the name of one of the larger mortgage insurers. Mortgage insurance is usually required in one form or another on all loans that have a loan-to-value higher than eighty percent. Also, FHA loans and certain first-time homebuyer programs require mortgage insurance regardless of the loan-to-value.
• Mortgage Insurance Premium (MIP)
  • The amount paid by a mortgagor for mortgage insurance, either to a government agency such as the Federal Housing Administration (FHA) or to a private mortgage insurance (MI) company.
• Mortgagor
  • The borrower in a mortgage agreement.

• Negative Amortization
  • Some adjustable rate mortgages allow the interest rate to fluctuate independently of a required minimum payment. If a borrower makes the minimum payment it may not cover all of the interest that would normally be due at the current interest rate. In essence, the borrower is deferring the interest payment, which is why this is called “deferred interest.” The deferred interest is added to the balance of the loan and the loan balance grows larger instead of smaller, which is called negative amortization.
• No Cash-Out Refinance
  • A refinance transaction which is not intended to put cash in the hand of the borrower. Instead, the new balance is calculated to cover the balance due on the current loan and any costs associated with obtaining the new mortgage. Often referred to as a “rate and term refinance.”
• Note
  • A legal document that obligates a borrower to repay a mortgage loan at a stated interest rate during a specified period of time.
• Notice of Default
  • A formal written notice to a borrower that a default has occurred and that legal action may be taken.

• Original Principal Balance
  • The total amount of principal owed on a mortgage before any payments are made.
• Origination Fee
  • On a government loan the loan origination fee is one percent of the loan amount, but additional points may be charged which are called “discount points.” One point equals one percent of the loan amount. On a conventional loan, the loan origination fee refers to the total number of points a borrower pays.
• Owner Financing
  • A property purchase transaction in which the property seller provides all or part of the financing.

• Personal Property
  • Any property that is not real property.
• PITI
  • An acronym used that stands for principal, interest, taxes and insurance.
• Planned Unit Development (PUD)
  • A type of ownership where individuals actually own the building or unit they live in, but common areas are owned jointly with the other members of the development or association. Contrast with condominium, where an individual actually owns the airspace of his unit, but the buildings and common areas are owned jointly with the others in the development or association.
• Point
  • A point is 1% of the amount of the mortgage. It is a fee paid upfront, one time, in order to “buydown” the interest rate. There is always a breakeven point for buying points. (also defined above as “discount point”)
• Power of Attorney
  • A legal document that authorizes another person to act on one’s behalf. A power of attorney can grant complete authority or can be limited to certain acts and/or certain periods of time.
• Pre-Approval
  • A loosely used term which is generally taken to mean that a borrower has completed a loan application and provided debt, income, and savings documentation which an underwriter has reviewed and approved. A pre-approval is usually done at a certain loan amount and making assumptions about what the interest rate will actually be at the time the loan is actually made, as well as estimates for the amount that will be paid for property taxes, insurance and others. A pre-approval applies only to the borrower. Once a property is chosen, it must also meet the underwriting guidelines of the lender.
• Prepayment
  • Any amount paid to reduce the principal balance of a loan before the due date. Payment in full on a mortgage that may result from a sale of the property, the owner’s decision to pay off the loan in full, or a foreclosure. In each case, prepayment means payment occurs before the loan has been fully amortized.
• Prepayment Penalty
  • A fee that may be charged to a borrower who pays off a loan before it is due.
• Pre-Qualification
  • This usually refers to the loan officer’s written opinion of the ability of a borrower to qualify for a home loan, after the loan officer has made inquiries about debt, income, and savings. The information provided to the loan officer may have been presented verbally or in the form of documentation, and the loan officer may or may not have reviewed a credit report on the borrower.
• Prime Rate
  • The interest rate that banks charge to their preferred customers.
• Principal
  • The amount borrowed or remaining unpaid. The part of the monthly payment that reduces the remaining balance of a mortgage.
• Principal Balance
  • The outstanding balance of principal on a mortgage. The principal balance does not include interest or any other charges.
• Principal, Interest, Taxes, and Insurance (PITI)
  • The four components of a monthly mortgage payment. Principal refers to the part of the monthly payment that reduces the remaining balance of the mortgage. Interest is the fee charged for borrowing money. Taxes and insurance refer to the amounts that are paid into an escrow account each month for property taxes and mortgage and hazard insurance.
• Private Mortgage Insurance (MI)
  • Mortgage insurance that is provided by a private mortgage insurance company to protect lenders against loss if a borrower defaults. Most lenders generally require MI for a loan with a loan-to-value (LTV) percentage in excess of 80 percent.
• Promissory Note
  • A written promise to repay a specified amount over a specified period of time.
• Public Auction
  • A meeting in an announced public location to sell property to repay a mortgage that is in default.
• Planned Unit Development (PUD)
  • A project or subdivision that includes common property that is owned and maintained by a homeowners’ association for the benefit and use of the individual PUD unit owners.
• Purchase Agreement
  • A written contract signed by the buyer and seller stating the terms and conditions under which a property will be sold.

• Qualifying Ratios
  • Calculations that are used in determining whether a borrower can qualify for a mortgage. There are two ratios. The “top” or “front” ratio is a calculation of the borrower’s monthly housing costs (principle, taxes, insurance, mortgage insurance, homeowner’s association fees) as a percentage of monthly income. The “back” or “bottom” ratio includes housing costs as will as all other monthly debt.
• Quitclaim Deed
  • A deed that transfers without warranty whatever interest or title a grantor may have at the time the conveyance is made.
• Radon
  • A gas emitted from the ground into a home through cracks. A typical contract contingency for homes with a basement, or any part of the home that is underground. For more information on Radon, visit the EPA Website.
• Rate Lock
  • A commitment issued by a lender to a borrower or other mortgage originator guaranteeing a specified interest rate for a specified period of time at a specific cost.
• Ratified (Ratification)
  • The date when all parties have signed and initialed a contract (must be in writing), and it becomes a legally binding document.
• Real Estate Agent
  • A person licensed to negotiate and transact the sale of real estate.
• Real Estate Settlement Procedures Act (RESPA)
  • A consumer protection law that requires lenders to give borrowers advance notice of closing costs.
• Real Property
  • Land and appurtenances, including anything of a permanent nature such as structures, trees, minerals, and the interest, benefits, and inherent rights thereof.
• Realtor^®
  • A real estate agent, broker or an associate who holds active membership in a local real estate board that is affiliated with the National Association of Realtors®.
• Recordation Tax
  • The tax paid on the purchase price of a property, paid by the buyer at closing for the recordation of executed legal documents.
• Recorder
  • The public official who keeps records of transactions that affect real property in the area. Sometimes known as a “Registrar of Deeds” or “County Clerk.”
• Recording
  • The noting in the registrar’s office of the details of a properly executed legal document, such as a deed, a mortgage note, a satisfaction of mortgage, or an extension of mortgage, thereby making it a part of the public record.
• Refinance Transaction
  • The process of paying off one loan with the proceeds from a new loan using the same property as security.
• Remaining Balance
  • The amount of principal that has not yet been repaid. See principal balance.
• Remaining Term
  • The original amortization term minus the number of payments that have been applied.
• Rentback
  • An agreement between parties whereby the seller transfers title to a property to a buyer, but negotiates a period of time and amount to lease the property back to the seller. (Sometimes used when a seller needs time to find another home or move out.)
• Revolving Debt
  • A credit arrangement, such as a credit card, that allows a customer to borrow against a preapproved line of credit when purchasing goods and services. The borrower is billed for the amount that is actually borrowed plus any interest due.
• Right of First Refusal
  • A provision in an agreement that requires the owner of a property to give another party the first opportunity to purchase or lease the property before he or she offers it for sale or lease to others.
• Right of Survivorship
  • In joint tenancy, the right of survivors to acquire the interest of a deceased joint tenant.

• Servicer
  • An organization that collects principal and interest payments from borrowers and manages borrowers’ escrow accounts. The servicer often services mortgages that have been purchased by an investor in the secondary mortgage market.
• Servicing
  • The collection of mortgage payments from borrowers and related responsibilities of a loan servicer.
• Subdivision
  • A housing development that is created by dividing a tract of land into individual lots for sale or lease.
• Survey
  • A drawing or map showing the precise legal boundaries of a property, the location of improvements, easements, rights of way, encroachments, and other physical features.
• Sweat Equity
  • Contribution to the construction or rehabilitation of a property in the form of labor or services rather than cash.

• Tenancy in Common
  • When there are two or more individuals on title to a piece of property, this type of ownership does not pass ownership to the others in the event of death.
• Title
  • A legal document evidencing a person’s right to or ownership of a property.
• Title Company
  • A company that specializes in examining and insuring titles to real estate.
• Title Insurance
  • Insurance that protects the lender (lender’s policy) or the buyer (owner’s policy) against loss arising from disputes over ownership of a property.
• Title Search
  • A 60 year check of the title records to ensure that the seller is the legal owner of the property and that there are no liens or other claims outstanding.
• Transfer of Ownership
  • Any means by which the ownership of a property changes hands.
• Transfer Tax
  • Taxes paid at settlement on the purchase price, by the seller, to sell the property to the buyer.
• Treasury Index
  • An index that is used to determine interest rate changes for certain adjustable-rate mortgage (ARM) plans. It is based on the results of auctions that the U.S. Treasury holds for its Treasury bills and securities or is derived from the U.S. Treasury’s daily yield curve, which is based on the closing market bid yields on actively traded Treasury securities in the over-the-counter market.
• Truth-in-Lending
  • A federal law that requires lenders to fully disclose, in writing, the terms and conditions of a mortgage, including the annual percentage rate (APR) and other charges.
• Two-Step Mortgage
  • An adjustable-rate mortgage (ARM) that has one interest rate for the first five or seven years of its mortgage term and a different interest rate for the remainder of the amortization term.
• Trustee
  • A fiduciary who holds or controls property for the benefit of another.

• VA Mortgage
  • A mortgage that is guaranteed by the Department of Veterans Affairs (VA). In order to qualify, the borrower must show Proof of Eligibility.
• Vested
  • Having the right to use a portion of a fund such as an individual retirement fund.
• Veterans Administration (VA)
  • An agency of the federal government that guarantees residential mortgages made to eligible veterans of the military services. The guarantee protects the lender against loss and thus encourages lenders to make mortgages to veterans.