Mortgage Glossary
There are a lot of unfamiliar terms that get tossed around during the mortgage process. But don't worry, we've put together this glossary to help you get a better grasp of any terms that may be less than clear.
V
VA Funding Fee
The Department of Veteran’s Affairs (VA) charges a Funding Fee to most veterans who obtain a VA mortgage loan to help sustain the VA home loan program. Only veterans receiving VA disability are exempt from paying this fee. The VA Funding Fee is a percentage of the principal loan amount and is due at closing. The amount of the VA Funding Fee varies depending on specifics of the transaction. The full amount can usually be financed as part of the loan amount or paid in cash.
VA Loan
A mortgage for veterans and service persons. The loan is guaranteed by the Department of Veterans Affairs (VA) and requires low or no down payment.
Vacancy Rate
The percentage of all units or space that is not leased, not rented or is unoccupied.
Vacant Land
Land that is not currently being used.
Vacate
To move out of a premises.
Vacation home
A home used by the owners only occasionally or seasonally, primarily for recreational purposes.
Valid
A document or contract that has legally binding force.
Vested
Having the right or privilege to use a portion of a fund, such as an individual retirement account (IRA).