We hope this Glossary of Mortgage and Real Estate Terms helps you understand the home buying and financing process. Should you have any further questions, please do not hesitate to contact your Loan Officer for answers.

# A B C D E F G H I J K L M N O P Q R S T U V W X Y Z

V Terms

VA: See Veterans Administration.

 

VA Certificate of Reasonable Value: The Veterans Administration (VA) issues a Certificate of Reasonable Value at a specific amount, agreeing to guarantee a mortgage loan to an eligible, qualified veteran buyer upon completion and sale of the house. The veteran must be aware of the VA's appraised value of the property.

 

Vacancy Rate:  The percentage of all units or space that is unoccupied or not rented.  On a pro-forma income statements a projected vacancy rate is used to estimate the vacancy allowance, which is then deducted from potential gross income to derive the effective gross income of the property.

 

Vacant Land:  Land that is not currently being used.  It may have utilities and off-site improvements.  Also see raw land.

 

Vacate:  To move out.

 

Vacation Home:  A dwelling used by the owner occasionally for recreational purposes.  It may be rented to others for a portion of the year. Also called a second home. 

 

Valid:  Having legally binding force; legally sufficient and authorized by law. 

 

VA Loan:  A home loan guaranteed by the U.S. Veterans Administration (VA) under the Servicemen's Readjustment Act of 1944.  The VA guarantees restitution to the lender in the event of a default by the veteran.  The benefit of a VA loan is that no down payment is required.

 

Valuation:  The estimated worth or market price if sold.

 

Variable Interest Rate:  An interest rate that adjusts of the life of the loan.

 

Variable Maturity Mortgage:  A mortgage loan with a monthly payment that remains the same, but the loan maturity is lengthened or shortened to achieve the adjustment in rate. 

 

Variable Payment Plan:  Any mortgage repayment schedule that provides for periodic change in the amount of monthly payment, interest-only period (flexible payment mortgage), a planned step- up in payments (graduated payment mortgage), or a change in the interest rate due to fluctuation in an index (variable rate mortgage).  

 

Variable-Rate Mortgage (VRM): A long-term mortgage loan in which the interest rate may vary or float periodically throughout the term of the loan. The fluctuations are generally based on an interest rate index and are restricted by caps under the terms of the mortgage. Also called an adjustable­ rate mortgage.

 

Variance:  Permission granted by a zoning authority to a property owner to allow for a specified violation of the zoning requirements. 

 

Vendee:  A real estate buyer.  

 

Vendor:  A real estate seller.  

 

Veneer:  Wood or brick exterior that covers a less attractive and/or less expensive surface. 

 

Venture Capital:  Money raised for high-risk investments generally for a business start-up or business expansion purpose.  Venture capital does at times invest in real estate development.

 

Verification:  A sworn statement that the contents of an instrument are correct. 

 

Verification of Deposit (VOD): A form sent to a borrower's depository to verify the funds of the borrower at the institution.

 

Verification of Employment (VOE): A form sent to the borrower's employer to verify the borrower's employment and employment history.

 

Verification of Rent (VOR):  A form sent to a borrower's landlord verifying the rent amount and payment history.

 

Vest:  To create an entitlement to a privilege or right. 

 

Veterans Administration: An independent agency of the federal government which helps veterans get long-term, low down payment mortgages. The agency normally does this by guaranteeing a portion of a lender's loans against loss. In return for this guarantee, lenders must follow prescribed procedures for loans established by the Veterans Administration (VA).

 

Violation:  An act or a condition contrary to law or to permissible use of real property. 

 

VOD: See Verification of Deposit.

 

VOE: See Verification of Employment.

 

VOR:  See Verification of Rent.

 

Voidable:  Capable of being voided, but not void unless action is taken to void it.  A contract to real estate entered into by a minor is voidable. 

 

Voluntary Conveyance: A transfer of title to real property, usually from a delinquent mortgagor to the mortgagee, given voluntarily to satisfy the balance due on a defaulted loan and to avoid foreclosure proceedings. Also called "deed in lieu of foreclosure" or "voluntary deed."

 

Voluntary Deed: See Deed in Lieu of Foreclosure.

 

Voluntary Lien :  A debt that the property owner agrees to have recorded. Typically a mortgage.