dept of va

The Department of Veterans Affairs - The VA provides fixed-rate loans for purchasing or refinancing owner occupied homes. Qualified veterans can use a VA loan to purchase a home with no money down or refinance their home at 90% of value. VA loans have slightly lower closing costs than conventional mortgages. Present VA loan limits are $203,000 for a purchase and $144,000 on a refinance loan. VA mortgages are available to eligible military personnel and members of the National Guard, veterans, and widows or widowers of veterans. There is a one time funding fee added to the loan, this fee may be waived for qualified disabled Veterans. Veterans are required to obtain a Certificate of Eligibility.

Deposit - Cash paid to the seller when a formal sales contract is signed.

Depreciation - Decline in property value.

Discount Points (or Points) – Money paid to a lender at closing in exchange for lower interest rates. Each point is equal to 1% of the loan amount. For more information on discount points see FAQ - Discount Points.

Documentary Stamps - A state tax, in the forms of stamps, required on deeds and mortgages when real estate title passes from one owner to another.

Document Review - Fee charged by lender for review of documents necessary to fund a loan.

Down Payment – Money paid for a house from the buyer’s funds at closing. The down payment amount is the difference between the purchase price and the mortgage amount.

Due-on-Sale Clause - Provision in a mortgage or deed of trust allowing the lender to demand immediate payment of the loan balance upon sale of the property.