The glossary, friend edition

The VA document proving you're eligible for the VA loan benefit and how much entitlement you have. Mel pulls it electronically in minutes — you don't need to chase it down.

The amount VA guarantees on your behalf. "Full entitlement" means no down payment and no VA-imposed loan limit. If a prior VA loan is still open, you may have "remaining" entitlement, which changes the math.

A one-time fee paid to VA (not the lender) that keeps the program self-funding. It can be financed into the loan. Veterans receiving disability compensation are typically exempt.

VA's extra affordability check: after your housing payment, debts, taxes and childcare, you must have a minimum amount left over each month based on family size and region. It's one reason VA loans perform so well.

Basic Allowance for Housing and Subsistence are non-taxable income. Because you keep all of it, lenders can often count a higher "grossed-up" amount when calculating your ratios.

VA's standards that a home must be safe, sound and sanitary — working heat, safe water (relevant for Alaska wells), no peeling lead paint, sound roof. The appraiser checks them.

The process when a VA appraiser expects to come in below contract price: they notify the lender first so you have a short window to submit supporting sales data before the value is final.

Interest Rate Reduction Refinance Loan — the VA "streamline." Lower your rate or go ARM-to-fixed with minimal docs and usually no appraisal. Must have a net tangible benefit.

VA loans can be assumed by a qualified buyer (veteran or not) when you sell — they take over your loan and rate. A big advantage when rates have risen.

The core of your payment: principal pays down what you borrowed, interest is the cost of borrowing it. Fixed-rate loans keep P&I the same for the whole term.

The account your lender uses to collect property taxes and insurance monthly and pay them when due. "PITI" = principal, interest, taxes, insurance.

Private mortgage insurance (conventional, under 20% down — cancellable at 20% equity) vs. FHA mortgage insurance premium (usually for the life of the loan). VA has neither.

Lender, title, appraisal, recording and prepaid items — typically 2–4% of the price. Sellers can pay some; VA caps what veterans can be charged in certain categories.

Money the seller agrees to put toward your costs. VA allows up to 4% of the price in concessions on top of normal closing costs — Mel helps you ask for it.

The rate is what you pay on the balance; APR folds in certain fees to show total cost. Compare loans on APR, but compare payments on rate.

Prepaid interest: paying a percentage of the loan up front to lower the rate. Worth it only if you keep the loan past the break-even — Mel runs that math.

Pre-qual is a conversation; pre-approval means verified income, assets and credit. Sellers want the second one. Mel only does the second one.

Your monthly debts (including the new mortgage) divided by gross monthly income. Each program has its own ceiling and its own flexibility.

Loan amount divided by home value. 100% LTV is $0 down — normal for VA, unusual anywhere else.

Money from family toward your down payment or closing costs. Allowed on most programs with a simple gift letter.

An independent opinion of the home's value, required by the lender. VA appraisals also check MPRs. In rural Alaska, scheduling is the long pole — Mel orders early.

The lender's review of the whole file against program rules. "Conditions" are the follow-up requests. Clean files move fast.

Underwriting is done and the loan is approved to fund. Closing is scheduled from here.

A document letting someone sign for you — common for deployed or overseas military buyers. VA has specific POA rules; Mel sets it up early.