Certificate of Eligibility (COE)
The document that confirms you meet the VA's service requirements and shows how much entitlement you have. Most lenders pull this electronically once they have your basic service information.
Entitlement
The VA's guarantee behind your loan — the number that determines how much you can finance with no down payment. See the VA loan guide for the difference between full and remaining entitlement.
VA Funding Fee
A one-time fee included on most VA loans in place of monthly mortgage insurance, usually rolled into the loan amount. It varies by down payment size and whether it's your first or a later use of the benefit; veterans with a service-connected disability rating are commonly exempt.
IRRRL (Interest Rate Reduction Refinance Loan)
The VA's "streamline refinance," for homeowners who already have a VA loan and want to refinance into a lower rate, typically with less documentation than a standard refinance.
VA Cash-Out Refinance
A refinance that lets a qualifying veteran borrow against home equity, available whether the current loan is VA or conventional.
Minimum Property Requirements (MPRs)
The baseline safety, soundness and sanitation standards a home must meet during the VA appraisal — things like a working roof, safe electrical and no major health hazards. It's not a substitute for a full home inspection.
Occupancy Requirement
The rule that a VA loan is for a primary residence, not a rental or vacation home, with an expectation that you move in within a reasonable period after closing (commonly interpreted as 60 days, with exceptions for documented active-duty circumstances).
Assumability
A feature unique to VA loans: a future buyer can potentially take over your loan and its rate, subject to lender approval and creditworthiness.
Restoration of Entitlement
The process of getting your full entitlement back after you sell a home financed with a VA loan and pay it off, so it's available to use again.
Non-Allowable Fees
Certain closing costs the VA doesn't permit a lender to charge the borrower directly; your lender can tell you which fees this covers on your loan.
Seller Concessions
Money a seller agrees to contribute toward a buyer's closing costs and prepaid items, up to a VA-set limit — a useful negotiating point in a market where sellers are open to it.
Pre-Approval
A lender's confirmation, after verifying your income, credit and assets, that they're prepared to lend up to a specific amount — different from an informal pre-qualification estimate.
See a term used somewhere that isn't here? Ask Rudy, or ask your lender directly — there's no such thing as a bad question when it's your own loan.
Talk to a lender. Rates, loan programs and approvals come from lenders, not from websites or real estate agents. Talk to your own mortgage broker, or use our preferred lender, Rodrigo Ballon with CrossCountry Mortgage, at 858-735-0255. You are always free to choose any lender you like, and you can verify any lender’s license at nmlsconsumeraccess.org.