Concepts Definitions
Department of Veterans Affairs (VA): A U.S. federal agency that partially guarantees home mortgage loans for eligible veterans, active-duty personnel, and their surviving spouses.
VA Loan: A home mortgage loan that is partially guaranteed by the U.S. Department of Veterans Affairs and issued by VA-approved lenders. These loans often feature no down payment and no mortgage insurance.
Certificate of Eligibility (COE): A document issued by the Department of Veterans Affairs that confirms a veteran’s eligibility for a VA-guaranteed loan.
Institutional Lender: A financial institution, such as a commercial bank, savings bank, thrift, or insurance company, that makes real estate loans and is typically supervised by legal regulations.
Cal-Vet Loans: A state-sponsored residential finance program offered by the California Department of Veterans Affairs, providing home and farm loans to veterans, which differs from federal VA loans in its security instrument (real property sales contract).
Federal Housing Administration (FHA): A federal agency that insures residential mortgage loans, typically allowing for lower down payments (e.g., 3.5%), but requires mortgage insurance premiums (MIP).
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