FHA Loan and Mortgage Glossary - Terms Beginning with 'V'

  • Veterans Administration: Also known as the VA. This is the government agency that offers benefits to military veterans and their families.
  • VA Home Loan Program: This is the part of the VA benefits that include a Home Loan Mortgage Guarantee Program in which veterans can get home loans at low interest rates and with zero down payment and low closing costs. They can also get loans to remodel their home, for energy efficient home improvements, for disability home renovations, and more. Veterans must go through a process to apply for these loans and qualify just like with traditional loans.
  • VA Mortgage Funding Fee: When a veteran gets a loan from the VA they have to pay a one time per loan funding fee to cover the costs of the loan. This funding fee is a percentage of the loan and is charged for each VA loan that is guaranteed by the VA.
  • VA Loan Limits: The VA Home Loan Guarantee Program has loan limits. These limits vary depending on the area of the country a loan is being procured in and the circumstances of the loan.
  • Variable Rate Mortgage: This is also known as an adjustable rate mortgage loan. This is a loan that starts out at a low interest rate for a set amount of years and then the rate becomes variable and changes over the rest of the mortgage term.
  • Verification of Deposit: This is a document from the bank, credit union, or financial institution of the borrower that serves as verification of their financial accounts.
  • Verification of Employment: This is a letter from the employer of the borrower that verifies their salary and position at the company they work for.