Mortgage Terms

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The mortgage industry has many unique and confusing terms and acronyms. We hope these descriptions help you to better understand the lending process.

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There are 8 names in this directory beginning with the letter S.
Second-Tier Entitlement
This additional entitlement helps boost the VA guaranty on qualified loans. Borrowers can secure a loan solely with their second-tier entitlement, as long as the loan amount is at least $144,000.

Secondary Mortgage Market
Lenders sell mortgages, often packaged into mortgage-backed securities, in this marketplace. Private investors and government-sponsored enterprises like Fannie Mae and Freddie Mac buy loans in the secondary market.

Seller Concessions
Sellers can pay a range of costs and charges for VA borrowers, including closing costs, property taxes, the VA Funding Fee and other items. But the VA caps seller concessions and closing costs at 6 percent of the loan amount.

Short Sale
An alternative to straightforward foreclosure. This is when the bank agrees to let you sell your home for less than it's worth. A short sale will negatively affect your credit score.

Special Adapted Housing (SAH)
This VA program provides grants for veterans with service-connected disabilities retrofit properties to meet their needs.

Staff Appraisal Reviewer (SAR)
A lender's staff appraisal reviewer, or SAR, examines a property's independent VA appraisal and issues the final Notice of Value.

A VA Streamline is another name for the Interest Rate Reduction Refinance Loan (IRRRL).

This essentially means borrowers or loans below an accepted credit standard, typically around 620. Subprime borrowers carry greater risks and now have trouble securing financing.

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