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Acceleration
Adjusted Basis
Adjustment Date
Adjustment Interval
Amortization
Appraisal
Appraised Value
Approval
APR (Annual Percentage Rate)
ARM (Adjustable-Rate Mortgage)
Arm's-Length Transaction
Assessment
Back-end Ratio
Balloon Note
Balloon Payment
Bankruptcy
Base Income
Blanket Mortgage
Broker
Buy Down
Cash Reserves
Cash-out Refinance
Certificate of Eligibility
Certificate of Reasonable Value (CRV)
Certificate of Veteran Status
Closing Costs
CLTV (Combined loan-to-value)
Co-borrower
COFI (Cost of Funds Index)
Collateral
Comparables
Conforming Loans
Construction Loan
Conventional Loan
Convertible ARM
Credit Report
Credit Score
Debt-to-Income Ratio
Deed of Trust
Default
Delinquency
Discount Points
Down Payment
Drive-by Appraisal
Earnest Money
EFT (Electronic Fund Transfer)
Equity
Escrow
Escrow Account
Fannie Mae (FNMA)
Federal Housing Administration (FHA)
Fixed-Rate Mortgage
Foreclosure
Freddie Mac  
Front-end Ratio
Gift Funds
Gov. National Mortgage Association (GNMA)
Good Faith Estimate
Gross Monthly Income
Hazard Insurance
HELOC (Home Equity Line of Credit)
HOA (Homeowners' Association)
Home Equity Loan
Housing Debt-to-Income Ratio
HUD-1 Statement
Impound
Income-to-Expenses Ratio
Index
Indexed Rate
Initial Interest Rate
Installment Debt
Home Loan Information:
Forms & Tools:
Daily Updates:
Insured Mortgage
Interest Rate Caps
Interest Rate Floor
Investment Property
Jumbo Loan
Junior Lien
Late Charge
Lien
Limited Cash-out Loan
Loan Application
Loan Commitment
Loan to Value Ratio
Lock
Lock-in Rate
Margin
Market Value
Maturity
Mortgage
Mortgage Insurance (MI)
Mortgagee
Mortgagor
Negative Amortization
Net Effective Income
Nonconforming Loans
Note
Origination Fee
Owner Financing
Piggyback
PITI
PMI (Private Mortgage Insurance)
Points
Pre-approval
Prepaid Expenses
Prepayment
Prepayment Penalty
Prequalification
Principal
Property Value
PUD (Planned Unit Development)
Purchase Money Mortgage
Qualifying Ratios
Rate and Term Refinance
Rate Lock
Recording Fees
Refinance
R.E. Settlement Procedures Act (RESPA)
Revolving Debt
Second Mortgage
Self-Employed Borrower
Servicer
SFR (Single-Family Residence)
Simple Interest
Subordinate Financing
Supplemental Income
Survey
Sweat Equity
Temporary Buydown
Time-share
Title
Title Insurance
Title Search
Townhouse
Truth in Lending
Two-step ARM
Underwriter
Underwriting
Usury
VA (Veterans Administration)
VA Loan
Verification of Deposit (VOD)
Verification of Employment (VOE)
Zoning
A
Acceleration
The right of the lender to demand the immediate repayment of the loan balance upon the default of
the borrower, or by using the Due on Sale Clause.

Adjusted Basis
The cost of a property plus the value of any capital expenditures for improvements to the property
minus any depreciation taken.

Adjustment Date
The date that the interest rate changes on an adjustable rate mortgage (ARM).

Adjustment Interval
On an ARM it is the time between changes in the interest rate and/or monthly payment. Typically one,
three or five years depending on the index.

Amortization
Loan payment divided into equal periodic payments calculated to pay off the debt at the end of a fixed
period, including accrued interest on the outstanding balance.  Usually, amortization is done over 30
years but some lenders offer 15 year amortization schedules.

Appraisal
An analysis of real property completed by a professionally trained and licensed appraiser to
determine the estimated value of the property.

Appraised Value
An opinion of a property's fair market value, based on an appraiser's knowledge, experience, and
analysis of the property.

Approval
Conditional loan approval is based on information provided to the lender verbally, information as
represented on the loan application and any other information that may be submitted to the lender.
The conditional approval is subject to the verification and/or receipt of additional information. Once all
closing conditions and lender requirements are satisfied, the loan will receive final approval.

APR (Annual Percentage Rate)
The annual percentage rate is a measure of the cost of credit on a yearly basis.  It is the effective
interest rate of the credit and the APR allows you to compare various kinds of mortgages based on
the yearly cost of each loan.

ARM (Adjustable-Rate Mortgage)
A mortgage that has an initial rate that adjusts periodically as determined in the loan documents and
in accordance with a current interest rate index (a predetermined margin is added to the index to
compute the interest rate). Generally, ARMs have lower rates than fixed-rate mortgages and are
easier to qualify for - but because they're based on changing interest rates, your payment amounts
can be unpredictable.

Arm's-Length Transaction
A transaction negotiated by unrelated parties, each acting in his/her own best interest.

Assessment
A local tax levied against a property for a specific purpose, such as a sewer or street lights.

B
Back-end Ratio
A borrower’s total debt-to-income ratio.  It is calculated by taking a borrower’s total monthly obligations
(debt) and then dividing by their gross monthly income. Monthly obligations include such items as
your mortgage payment, property taxes, insurance premiums, installment loans, and revolving debt
(credit cards).

This ratio is used to determine a borrower’s ability to repay the mortgage and all other debts and is a
crucial calculation in determining the loan amount for which they can qualify. In conjunction with your
expenses-to-income ratio, it represents their financial capacity to assume and repay debt.

Balloon Note
A loan which is amortized for a longer period than the term of the loan. Usually this refers to a thirty
year amortization and a five or seven year term. At the end of the term of the loan, the remaining
outstanding principal on the loan is due.

Balloon Payment
The final lump sum paid at the maturity date of a balloon mortgage.

Bankruptcy
A legal procedure initiated either by the debtor (voluntary) or by creditors (involuntary) when the debtor
is unable to make his or her payments. The bankruptcy court will ultimately distribute the debtor's
property to creditors to fulfill repayment of debts.

Base Income
The borrower's salary.  If the borrower is self-employed, it is the net income or the income after
expenses.

Blanket Mortgage
A mortgage covering at least two pieces of real property as security for the same mortgage.


Broker
A professional who does not lend money directly, but who arranges financing and contracts with a
client for a fee and/or commission.

Buy Down
An arrangement where a party pays a lender an up-front fee, or premium, to reduce ("buy down") a
borrower's interest rate on a loan for a temporary time period, usually one to three years.

C
Cash Reserves
The amount of liquid assets the borrower has remaining after the mortgage loan transaction is
completed.

Cash-out Refinance
A transaction that provides significant cash proceeds to the borrower or provides cash that is used to
pay off non-mortgage debt.

Certificate of Eligibility
The document given to qualified veterans which entitles them to obtain VA guaranteed loans for
homes, business and mobile homes.

Certificate of Reasonable Value (CRV)
An appraisal issued by the Veterans Administration showing the property's current market value.

Certificate of Veteran Status
The document given to veterans or reservists who have served 90 days of continuous active duty
(including training time). This document enables veterans to obtain lower down payments on certain
FHA insured loans.

Closing Costs
Expenses over and above the price of the property that are incurred by buyers and sellers when
transferring ownership of a property. Closing costs normally include an origination fee, property taxes,
charges for title insurance and escrow costs, appraisal fees, etc.

CLTV (Combined loan-to-value)
The CLTV is the ratio of the total liens against the subject property to the lesser of either the appraised
value or the sales price.

Co-borrower
A person who is jointly and equally liable for repayment of the home loan obligation. A co-borrower
completes an application and submits all documentation and may or may not be on the trust deed.

COFI (Cost of Funds Index)
An index used to determine interest rate changes for certain ARMs. It represents the weighted
average cost of savings, borrowings, and advances of the 11th District members of the Federal Home
Loan Bank of San Francisco.

Collateral
An object that a borrower offers as security to a creditor to guarantee repayment of a loan. In the case
of home loans, collateral is a piece of real property (land and/or a building). Borrowers are bound to
repay loans (plus interest) to their lender(s). If they fail to do so - or default - the lender can take
possession of, or foreclose on, the collateral.

Comparables
An estimate of a home’s value based on comparable sales (comps).

Conforming Loans
Loans that conform to Federal Home Loan Mortgage Corporation (FHLMC) and Fannie Mae (FNMA)
requirement(s) and do not exceed the maximum loan amount and loan-to-value (LTV) limitations
established by FNMA or FHLMC.

Construction Loan
A short term interim loan to pay for the construction of buildings or homes. These are usually
designed to provide periodic disbursements to the builder as he or she progresses.

Conventional Loan
A mortgage not insured by FHA or guaranteed by VA

Convertible ARM
A type of adjustable rate mortgage that includes an option for the borrower to change the mortgage to
a fixed-rate mortgage at specified intervals during a period stated in the loan documents.

Credit Report
A report produced by a credit bureau company covering an individual's credit history and current credit
standing. This report produces a credit score based on the information found in the report.  The credit
score is a very important measure used in the loan approval process.

Credit Score
A credit score is a statistical summary of the information contained in a consumer's credit report. The
most well known type of credit score is the Fair Isaac or FICO score. This form of credit scoring is a
mathematical summary calculation that assigns numerical values to various pieces of information in
the credit report. The overall credit score is very important measure used in the loan approval process.


D
Debt-to-Income Ratio
Also known as Back-end ratio.  The ratio of the borrower's total monthly obligations - including
housing expenses and recurring debts - to monthly income. It's used to determine a borrower’s
capacity to repay the mortgage and all other debts. Your debt-to-income ratio is a crucial number in
determining the loan amount for which a borrower can qualify it represents your financial capacity to
assume and repay debt.

Deed of Trust
A legal instrument used instead of a mortgage in California and other states. This document allows
legal title to a real property to be vested in trustees to secure payment of a promissory note.

Default
Failure to meet the legal obligations in a loan contract by not providing monthly mortgage payments or
violating other terms of the loan contract.

Delinquency
Failure to make monthly mortgage payments as scheduled. This is serious for the borrower since it
can ultimately result in foreclosure on a property.

Discount Points
Payable to the lender by the borrower or seller to decrease the interest rate. One point is equal to 1%
of the loan amount.

Down Payment
Money paid by the borrower that is the difference between the purchase price of the property and the
loan amount.

Drive-by Appraisal
An estimate of value from an independent appraiser that is based primarily on recent comparable
sales.

E
Earnest Money
Money given by a buyer to a seller as part of the purchase price to bind a transaction or assure
completion of a transaction.

EFT (Electronic Fund Transfer)
Monthly automated payments processed through the Automated Clearing House (ACH) system. Most
lenders offer this as an option to borrowers so monthly payments are electronically transferred from
an account the borrower specifies.

Equity
The difference between the fair market value and current debt and liens on the property. The value an
owner has in real estate over and above the obligationd against the property.

Escrow
NEED NEW DEFINITION

Escrow Account
An account in which a portion of the monthly payment is held by the lender on the borrower's behalf for
the payment of future taxes, mortgage and hazard insurance, special assessments insurance, and
other on-going payments as they occur. Sometimes also called an Impound Account.   The funds are
gradually collected in the escrow account, then paid out in full by the lender when the charges
become due.


F
Fannie Mae (FNMA)
Federal National Mortgage Association is a tax-paying corporation, created by Congress to support
the secondary mortgage market. It makes mortgage money more available by buying and selling
conventional residential mortgages, as well as VA-guaranteed and FHA-insured mortgages.

Federal Housing Administration (FHA)
A government mortgage insurance agency within the Department of Housing and Urban Development
that sets requirements for underwriting mortgages and insures residential mortgages made by
private lenders against loss from default of borrowers on residential properties.

Fixed-Rate Mortgage
A mortgage set up with one fixed interest rate for the entire term of the mortgage, so the borrower pays
the same monthly payments for the life of the loan. This offers predictability, an advantage for
borrowers on fixed or limited incomes.

Foreclosure
The legal process by which a borrower in default under a mortgage or deed of trust loses all rights to,
and interest in, the mortgaged property. This usually involves a forced sale of the property at a public
auction, with the proceeds of the sale being applied to the mortgage debt. Foreclosure can result if
mortgage payments are not made on time.

Freddie Mac  
Federal Home Loan Mortgage Corporation, similar to FNMA, is a tax-paying corporation, created by
Congress that purchases conventional mortgages in the secondary mortgage market from insured
financial institutions and qualified mortgage bankers.

Front-end Ratio
The ratio of house payment(s) - including insurance, private mortgage insurance, and property taxes -
to income.


G
Gift Funds
Funds donated on behalf of the borrower from certain eligible sources to assist the borrower in
meeting closing costs. Generally, eligible sources are relatives, churches, municipalities, or nonprofit
organizations.

Government National Mortgage Association (GNMA)
Also known as "Ginnie Mae."  Provides sources of funds for residential mortgages, insured or
guaranteed by FHA or VA.

Good Faith Estimate
An estimate of the closing costs provided to the borrower by the lender.

Gross Monthly Income
The total amount a borrower earns each month prior to any deductions.

H
Hazard Insurance
A form of insurance in which the insurance company protects the insured from specified losses
caused by fire, wind, or other particular natural disasters.

HELOC (Home Equity Line of Credit)
A loan, usually in a second lien position, allowing a borrower to withdraw equity in real estate owned
with specific limitations.  A borrower can draw cash against his or her line of credit to use when
needed.

HOA (Homeowners' Association)
A nonprofit association whose directors and officers are elected by the unit owners of a condominium
or PUD project. Primary responsibilities are to manage the common areas, expenses, and services
of the condominium or PUD project.

Home Equity Loan
A loan in which the lender acquires either a first or second lien position as security for the loan, giving
the borrower the funds he or she needs for a purchase opportunity, home maintenance, debt
consolidation, or major expenses.

Housing Debt-to-Income Ratio
The sum of all monthly housing mortgage expenses, such as PITI, homeowners' dues, private
mortgage insurance, and any special assessments, as a percentage of the borrower's gross
qualifying income.  Also known as Front-end ratio.

HUD-1 Statement
A document that provides an itemized listing of the funds that are payable at closing. Items that
appear on the statement include real estate commissions, loan fees, points and initial escrow
amounts. The totals at the bottom of the HUD-1 statement define the seller's net proceeds and the
buyer's net payment at closing.


I

Impound
The portion of a borrower's monthly payments held by the lender or servicer to pay for taxes, hazard
insurance, mortgage insurance, lease payments, and other items as they become due.

Income-to-Expenses Ratio
The ratio of a borrower’s monthly income (gross unless self-employed - in which case net income) to
monthly expenses. It is used to determine one's ability to repay debt and thus is a crucial
consideration in determining if, and for how large a loan, one can qualify to borrow.

Index
A published interest rate - such as the Prime Rate, LIBOR, T-Bill rate, or the 11th District COF.  
Lenders use an index to establish and adjust interest rates on adjustable mortgages. For example, to
compute the interest rate on an adjustable-rate mortgage, a predetermined margin is added to the
index.

Indexed Rate
The sum of the published index plus the margin.  For example if the index is 4.25% and the margin is
2.5%, the indexed rate would be 6.75%.

Initial Interest Rate
The original interest rate of the mortgage at the time of closing. This rate changes for an adjustable
rate mortgage (ARM). It's also known as "start rate" or "teaser."

Installment Debt
Borrowed money that is repaid in successive, most often, regular payments.  The monthly debt
service is sometimes excluded from the debt-to-income calculation if 10 or fewer payments remain to
be made.

Insured Mortgage
A mortgage that is protected by the Federal Housing Administration (FHA) or by private mortgage
insurance (MI).

Interest Rate Caps
Limits the increase or decrease of interest rate changes per year or during the life of the loan, and/or
a limit on the amount that monthly payments can change. They protect the borrower as interest rates
rise.

Interest Rate Floor
For an adjustable rate mortgage (ARM), the minimum interest rate, as specified in the mortgage note.


Investment Property
A non-owner occupied property used to generate income.

J
Jumbo Loan
A loan which is larger than the limits set by the Federal National Mortgage Association and the
Federal Home Loan Mortgage Corporation. Because jumbo loans cannot be funded by these two
agencies, they usually carry a higher interest rate.

Junior Lien
Any lien that is subordinate or subsequent to the claims of a prior lien. A HELOC can be one type of a
junior lien.


K
There are no definitions in this section.


L
Late Charge
The penalty a borrower must pay when a payment is made a stated number of days after the due date.

Lien
A claim upon a piece of property for the payment or satisfaction of a debt or obligation.

Limited Cash-out Loan
A refinance transaction in which the loan amount is limited to the sum of the unpaid principal balance
of the existing first trust deed, closing costs, prepaid items, points, and the amount required to satisfy
any subordinate liens and funds back to the borrower that do not exceed 1 percent of the principal
amount of the new mortgage.

Loan Application
A document required by a lender before issuing a loan commitment. It includes information such as
the name of the borrower, terms and amount of loan, and details of the property used as collateral.

Loan Commitment
An agreement to lend money, usually for a specific amount to be repaid by a specific date on specific
terms. This commitment is contingent upon the accuracy of the information submitted by the applicant
in the loan application and other information submitted by the borrower.

Loan to Value Ratio (LTV)
The relationship between the amount of the loan and the appraised value of the property expressed
as a percentage.

Lock
A lender's guarantee that the mortgage rate quoted will be good for a specific number of days from the
day of application.

Lock-in Rate
The interest rate percentage for the loan that will remain the same until funding.

M
Margin
The amount a lender adds to the index on an adjustable rate mortgage to establish the adjusted
interest rate.

Market Value
The highest price that a buyer would pay and the lowest price a seller would accept on a property.
Market value may be different from the price a property could actually be sold for at a given time.

Maturity
The date when the loan is scheduled to be repaid in full.

Mortgage
A note or other evidence of real property being pledged as the security for a debt.  In California it is
referred to as a Deed of Trust or Trust Deed.  Can also be known as Security Instrument.

Mortgage Insurance (MI)
Insurance that protects a mortgage lender against loss in the event of default by the borrower. This
insurance allows lenders to make loans with lower down payments.

Mortgagee
The lender or the institution that holds one's loan.

Mortgagor
The borrower.

N
Negative Amortization
When your monthly payments are not large enough to pay all the interest due on the loan. This unpaid
interest is added to the unpaid balance of the loan. The home buyer ends up owing more than the
original amount of the loan.

Net Effective Income
The borrower's gross income minus federal income tax.


Nonconforming Loans
Loans that do not conform to traditional Fannie Mae or Freddie Mac conditions. Generally, loans
above $417,000 (for all states except Alaska and Hawaii) are nonconforming loans. They are also
known as Jumbo loans.

Note
A legal instrument in which a borrower promises to repay his or her loan at a stated interest rate
during a specified period of time.

O
Origination Fee
A fee charged by the lender to prepare loan documents, inspect and appraise the house, and arrange
a credit check. The fee is calculated as a percentage of the loan's face value.

Owner Financing
A property purchase transaction in which the seller of the property provides all or part of the financing
for the buyer.


P

Piggyback
Borrowers often use a "piggyback" second mortgage behind a first mortgage so they do not have to
provide a 20 percent down payment.

PITI
Principal, interest, taxes, and insurance - a term used in reference to the components of one's
monthly mortgage payments.

PMI (Private Mortgage Insurance)
Insurance coverage a lender requires the borrower to obtain to protect the lender against loss in the
event of a mortgage default. It's mandatory for higher loan-to-value mortgages.  In most cases loans
above 80% LTV are considered high loan-to-value mortgages.

Points
Prepaid interest assessed at closing by the lender. Paying points will decrease the loan's interest
rate. One point equals 1 percent of the loan amount. Also called discount points.

Pre-approval
The process of determining how much money you will be eligible to borrow before you apply for a
loan.  Pre-approval allows the buyer to negotiate like a cash buyer.

Prepaid Expenses
Items that generally must be paid for at the time of closing and are generally recurring charges.
Prepaid items may include taxes; first-year premiums for hazard, flood, and mortgage insurance;
prorated interest, and any special assessments that must be prepaid.
Prepayment
A privilege in a mortgage permitting the borrower to make payments in advance of their due date.

Prepayment Penalty
Monetary charged for an early repayment of debt. Prepayment penalties are allowed in some form (but
not necessarily imposed) in many states.

Prequalification
Providing financial information (credit ratings, employment status and income, and outstanding
debts) to a lender in order to calculate a suitable mortgage for the buyer. Prequalification grants no
legal rights, but is helpful in showing what size mortgage one can prudently handle and therefore how
much home one can afford.

Principal
The outstanding balance of principal on a mortgage not including interest or any other charges.

Property Value
The value of a property in terms of either the appraised amount or the purchase amount, whichever is
lower.

PUD (Planned Unit Development)
A real estate project in which each unit owner has title to a residential lot and a nonexclusive
easement on the common areas of the project.

Purchase Money Mortgage
A mortgage used to purchase real property where the title is conveyed from one individual to another.

Q
Qualifying Ratios
There are two main qualifying ratios used to measure the borrower's capacity to repay the mortgage
debt. The percentage of payment-to-income (P/I) and debt-to-income (D/I).

R
Rate and Term Refinance
A refinance of a mortgage in which the new mortgage amount is limited to the unpaid principal
balance of the existing first mortgage plus any closing costs.

Rate Lock
A commitment issued by a lender to a borrower or another mortgage originator guaranteeing a
specified interest rate and lender costs for a specified period of time.

Recording Fees
Fees charged by a county recorder's office to record a mortgage or deed of trust.

Refinance
The process in which one replaces the original mortgage loan with a new one to take advantage of
lower interest rates, better terms or to get cash.

Real Estate Settlement Procedures Act (RESPA)
A federal law that allows consumers to review information on known or estimated settlement costs
once after application and once prior to or at settlement. The law requires lenders to furnish the
information after application only.

Revolving Debt
A debt that does not have a fixed payment, although repayment is usually a percentage of the
outstanding balance and made at regular intervals.  The most common example of revolving debt is a
credit card.

S
Second Mortgage
A mortgage that is in a second position behind (or subordinate to) the original first mortgage.

Self-Employed Borrower
A borrower whose total income is derived from a business source in which he or she has an
ownership interest of 25 percent or more.

Servicer
A company that collects principal and interest payments from borrowers and manages borrower
escrow accounts. The servicer often services mortgages that have been purchased by an investor in
the secondary mortgage market.

SFR (Single-Family Residence)
A structure intended to house only one family.

Simple Interest
Interest which is computed only on the principle balance.

Subordinate Financing
Secondary financing secured by a lien that is junior to the first mortgage or senior claim - for example,
a second mortgage.

Supplemental Income
Income derived from sources such as interest/dividends, capital gains, and rental properties.  These
sources require tax returns to support the qualifying income.

Survey
A report prepared by a registered land surveyor that shows the precise location of the property and/or
a description of the property’s boundaries.

Sweat Equity
The exchange of labor or services in lieu of paying cash for the purpose of receiving credit toward the
down payment. Not generally an eligible source of down payment for most lenders.

T

Temporary Buydown
A loan on which the interest rate has been "bought down" for a temporary period of time at the
beginning of the loan by escrowing funds at the time of closing, which will be applied to the total
monthly mortgage payment as each becomes due.

Time-share
A real estate development in which a buyer can purchase the exclusive right to occupy a unit for a
specified period of time each year.

Title
A document that gives evidence of an individual's ownership of property.

Title Insurance
A policy, usually issued by a title insurance company, which insures a home buyer against errors in
the title search. The cost of the policy is usually a function of the value of the property, and is often
shared by the purchaser and/or seller. Policies are also available to protect the lender's interests.

Title Search
A process providing proof of legal ownership of a property by researching municipal record - usually
performed by a title company.

Townhouse
An architectural type of construction where a row house on a small lot has exterior limits common to
other similar units. Title to the unit and its lot is vested in the individual owner with a fractional interest
in common areas.

Truth in Lending
A federal law requiring lenders to disclose the Annual Percentage Rate, finance charges, payment
schedule, and other disclosures within three business days after the receipt of a loan application on
certain types of loan transactions.

Two-step ARM
An ARM (adjustable-rate mortgage) that has a fixed interest rate for the first five or seven years of the
mortgage term, then adjusts at the current market rate plus a predetermined margin, then remains
fixed at that rate for the remainder of the term.

U
Underwriter
An analyst employed by the lender who reviews the supportive documentation to determine the risk
associated with the loan request and who gives final loan approval.

Underwriting
The decision whether to make a loan to a potential home buyer based on credit, employment, assets,
and other factors and the matching of this risk to an appropriate rate and term or loan amount.

Usury
Interest charged in excess of the legal rate established by law.

V
VA (Veterans Administration)
A government agency designed to encourage mortgage lenders to offer long-term, low-down-payment
financing to eligible veterans by partially guaranteeing the lender against loss from default.

VA Loan
A long-term, no-down-payment or low-down-payment loan guaranteed by the Department of Veterans
Affairs. Individuals usually qualify by proof of military service.

Verification of Deposit (VOD)
A document signed by the borrower's financial institution verifying the status and balance of his/her
financial accounts.

Verification of Employment (VOE)
A document signed by the borrower's employer verifying his/her position and salary.

W
There are no definitions in this section.

X
There are no definitions in this section.

Y
There are no definitions in this section.

Z
Zoning
The creation of districts by local governments in which specific types of property uses are authorized
(e.g., commercial, industrial, residential, high density, mixed use).
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