VA Loan Acronyms
As a veteran, active duty military or current or former member of the Guard or Reserves, your familiarity with military terms at some point becomes natural. You don’t eat meals but MREs. And the DVA of course provides lenders with VA loan guidelines VA lenders use to approve VA home loans. If you’re an officer you went to OCS and worked for the DOD. Let’s add a few acronyms that you’ll encounter during the VA mortgage process. What can you expect and what do they mean?
Your VA lender needs to document your pay to help qualify active duty, so you’ll be asked for your LES, your Leave and Earnings Statement. If you’re a civilian now, you’ll simply provide your pay check stubs instead.
The APR is your annual percentage rate, it’s the cost of the money borrowed expressed as an annual interest rate. Lenders consider the loan amount, note rate and finance charges to produce your APR.
IRRRL is the Interest Rate Reduction Refinance Loan. The IRRRL is also known as the VA streamline refinance and is a low documentation VA loan that replaces an existing VA loan with a lower rate or out of an adjustable rate.
The COE is your certificate of eligibility. The COE is the definitive document letting a VA lender know you qualify for the VA home loan benefit and how much entitlement you have available for the program.
Your DD-214 stands for the Department of Defense form 214 and is used to complete the DD form 26-1880, the Request for a Certificate of Eligibility.
Your FICO score is an algorithm created by the Fair Isaac Corporation and is a three digit number indicating the likelihood of default on a VA loan. Oh, and can you afford your new monthly payment? In order to obtain QM, or qualified mortgage status and show the ATR, or ability to repay, your affordability will be documented according to CFPB and VA standards.