UT VA loan glossary
Mike Certo · Cornerstone First Mortgage · NMLS #260555 ·
VA loans + UT-specific veteran programs have a vocabulary of their own. This glossary collects the terms Veterans actually encounter, plain-English definitions, and UT-relevant context where useful. Bookmark this page.
A
AMI (Area Median Income) — Income benchmark used by Utah Housing Corporation (UHC) Down Payment Assistance (DPA) programs to set eligibility. UHC publishes county-by-county income limits each year for FirstHome, HomeAgain, Score, and NoMI.
Assumable — A VA loan can be assumed by a qualified buyer (veteran or non-veteran). The original veteran's entitlement stays tied to the loan unless the assuming party is also a veteran substituting their own entitlement. Full guide.
ARM (Adjustable Rate Mortgage) — VA permits ARMs but most VA loans are fixed-rate. Less common in UT market.
B
BAH (Basic Allowance for Housing) — Monthly housing stipend paid to active-duty service members. Varies by base + rank + dependent status. 2026 Hill AFB E-5 w/dep = $2,289. BAH calculator.
Back-end DTI — Total debt obligations (PITI + other monthly debts) as a percentage of gross income. VA guideline: 41%. Some lenders accept higher with strong residual income.
C
Cash-out refi — VA refinance that pulls equity out of the home. VA allows up to 100% LTV cash-out (higher than conventional 80% cap). Funding fee applies (2.15% first use / 3.30% subsequent).
CFD (Community Facilities District) — Special assessment districts in some UT master-planned communities (Daybreak, Vistancia, Eastmark). Adds to monthly housing cost; VA underwriter includes in DTI.
Closing costs — Fees paid at closing — typically 2-4% of loan amount. VA caps several. Seller can pay up to 4% in concessions.
Cluster home — Detached or semi-detached home in a planned community with shared common-area maintenance. Common in UT retirement communities. VA loan eligible if HOA approved.
COE (Certificate of Eligibility) — VA-issued document confirming a veteran's eligibility for the VA loan benefit. Free, obtained through VA.gov or via Mike. Required before VA loan can close.
Equitable distribution — Utah is an equitable-distribution state, not a community-property state. In a divorce, a court divides marital property fairly rather than splitting it automatically 50/50. This affects how a VA loan is titled and how divorce and estate planning interact with the home.
Compensation — VA disability monthly payment based on rating (10%-100%). Federally tax-free in all states.
Conforming loan limit — Maximum loan size for standard VA (or conventional) financing. 2026 UT baseline: $832,750 statewide.
D
Defensible space — Cleared/maintained vegetation around a home in wildfire-prone areas. Required by VA MPR + UT Department of Forestry in WUI zones.
DD-214 — Discharge document issued at military separation. Used to verify VA loan eligibility + claim other Veteran benefits.
Disability rating (VA) — Percentage rating (0% to 100%, in 10% increments) assigned by VA based on service-connected disabilities. Any service-connected rating waives the VA funding fee. In Utah, the disabled-Veteran property tax abatement scales by your rating, with a maximum exemptible taxable value of $535,459 at a 100% rating.
DPA (Down Payment Assistance) — Utah Housing Corporation (UHC) programs that pair a first mortgage with a DPA second to help with down payment and closing costs. Top options: FirstHome, HomeAgain, Score, and NoMI. There is also a separate state First-Time Homebuyer Assistance Program. Stacker guide.
DTI (Debt-to-Income ratio) — Total monthly debt divided by gross monthly income. VA guideline: 41% back-end. Front-end (PITI only) typically should be ≤29%.
E
Earnest money deposit (EMD) — Money buyer puts up at offer acceptance to show good faith. Standard UT EMD is 1% of price; 2-3% strengthens VA offers in competitive markets.
Entitlement — Veteran's $0-down VA loan capacity. Currently $144,000 basic + 25% of FHFA conforming limit = roughly $208,000 total entitlement in 2026. Limits the $0-down amount; doesn't cap the loan size for Veterans with full entitlement.
Escrow account — Account where lender holds property tax + insurance funds and pays them when due. Most UT VA loans use escrow.
F
FAIR Plan (UT FAIR Plan) — Insurance of last resort for homes that can't get standard market insurance — typically high-wildfire-risk UT properties. More expensive, more limited coverage.
FHFA limit — Federal Housing Finance Agency conforming loan limit. 2026 baseline: $832,750 across all 15 UT counties.
First use — A veteran's first time using VA loan benefit. Lower funding fee (2.15% at $0 down) vs subsequent use (3.30%).
Front-end DTI — PITI as a percentage of gross income. VA prefers ≤29% but DTI alone doesn't decide approval.
Funding fee — One-time VA fee paid at closing (can be financed). 2.15% first use, 3.30% subsequent at $0 down. Waived for 10%+ disability rating. Calculator.
G
Gross income — Income before taxes. Used for DTI calc.
Gross-up — Treatment of tax-free income (VA disability, BAH, etc.) as higher equivalent taxable income for mortgage qualification. Standard 25% boost. Calculator.
H
FirstHome Loan (UHC) — Utah Housing Corporation first-mortgage program for first-time buyers, paired with a DPA second of up to 6% of the first-mortgage amount (FirstHome / FHA / VA). Disabled-Veteran tax guide.
HOA (Homeowners Association) — Community association charging monthly/annual fees for shared amenities + maintenance. Common in UT master-planned communities. Affects VA DTI calculation.
HomeAgain Loan (UHC) — Utah Housing Corporation first-mortgage program open to repeat buyers, paired with a DPA second. Minimum credit score around 660.
Disabled-Veteran property tax abatement — Utah benefit that exempts a portion of the taxable value of a disabled Veteran's primary residence, scaled by VA disability rating, up to a maximum exemptible taxable value of $535,459 at a 100% rating. No income limit; file by September 1.
I
IRRRL (Interest Rate Reduction Refinance Loan) — VA streamline refi. No income docs, no appraisal, no funding fee if disability waiver. Must pass VA's 36-month recoupment test. Calculator.
Inspection — Buyer-paid home inspection (separate from VA appraisal). Identifies condition issues + bargaining points.
J
Joint VA loan — Two veterans buying together can use combined entitlement. Each contributes their entitlement; combined down-payment requirement scales accordingly.
Jumbo VA — VA loan above the FHFA conforming limit ($832,750 in UT). Vets with full entitlement can finance to ~$4M with select lenders.
L
Land lease — Property where you own the home but lease the land. Rare in UT. VA typically can't finance.
LO (Loan Officer) — Mortgage professional originating loans. Mike is an LO at Cornerstone First Mortgage. NMLS #260555.
LTV (Loan-to-Value ratio) — Loan amount divided by appraised property value. VA allows 100% LTV (and effectively higher with funding fee financed).
Hill AFB — Hill Air Force Base, West Jordan UT. 56th Fighter Wing — F-35A Lightning II. ~7,000 active-duty + 15,000 family members. Base hub page.
M
MCC (Mortgage Credit Certificate) — Federal tax credit for portion of mortgage interest paid. UT Housing Authority administers. Can stack with VA + DPA.
MHA (Military Housing Area) — Geographic area used to set BAH rates. Hill AFB falls in Salt Lake City MHA; Dugway Proving Ground in Provo MHA.
MPR (Minimum Property Requirements) — VA's property standards. Working A/C, sound roof, adequate water/sewer, no major safety issues, defensible space in wildfire areas.
N
NADL (Native American Direct Loan) — VA loan program for Native veterans on tribal trust land. VA is the direct lender. Full guide.
Net income — Income after taxes. Used for VA residual income calc.
NMLS — Nationwide Multistate Licensing System for mortgage professionals. Mike: NMLS #260555. Cornerstone: NMLS #173855.
O
Occupancy — VA requires primary residence occupancy within 60 days of closing. No exception for second homes or investment property.
Origination fee — Lender fee for processing the loan. VA caps at 1% of loan amount.
P
NoMI Loan (UHC) — Utah Housing Corporation conventional first-mortgage program structured to avoid monthly mortgage insurance, paired with a DPA second. Utah also runs a separate state First-Time Homebuyer Assistance Program offering up to $20,000 for new-build homes priced up to $450,000.
PCS (Permanent Change of Station) — Military relocation between duty stations. 60-day window from arrival for VA primary-residence occupancy. See the metro comparison guide for PCS-timing tactics.
PITI — Principal, Interest, Taxes, Insurance. Total monthly housing payment. Calculator.
Pre-underwriting (TBD) — Full underwriting before a specific property is identified. Strongest pre-approval format; Mike issues TBD letters for UT summer-PCS situations.
Primary residence — VA loan requirement. Must occupy as primary residence within 60 days of closing.
R
Reserves (military) — National Guard + Reserve service. Reservists with 6+ years qualify for VA loan benefit.
Residual income — Net income remaining after PITI + utilities + debts. VA's hidden second qualifying test (separate from DTI). Required minimums by family size + region. Calculator.
Restored entitlement — VA entitlement restored after a previous VA loan is paid off (typically via home sale). Allows reuse for next purchase.
S
Seller concessions — Money seller agrees to pay toward buyer closing costs. VA allows up to 4%.
Subsequent use — Second or later use of VA benefit. Higher funding fee (3.30% at $0 down vs 2.15% first use).
Survivor benefits — Surviving spouse of KIA or service-connected disabled Veteran may be eligible for VA loan + property tax exemptions + Dependency and Indemnity Compensation.
T
TBD (To Be Determined) — Pre-underwriting before property is identified. Strongest pre-approval letter format.
Term — Length of the loan. Standard VA is 30 years; 15-year and 20-year also available.
Tribal trust land — Land held in trust by the federal government for a tribe or individual Native American. Standard VA can't finance; NADL applies.
U
Underwriting — Lender's full review of borrower + property. Verifies income, credit, assets, property.
V
VA appraisal — VA-ordered appraisal verifying property value + MPR compliance. Different from buyer's inspection.
VA Builder ID — Registration number assigned by VA Regional Loan Center to qualified builders. Required for VA construction loans.
VA disability compensation — Monthly tax-free payment based on service-connected disability rating.
VA loan limit — Maximum loan size at full guaranty. 2026 UT baseline: $832,750.
Vested veteran — Veteran who has earned the VA loan benefit through qualifying military service.
W
Wildfire Factor — Property-specific wildfire risk score (1-10). Higher scores affect insurance availability + costs. Wildfire guide.
WUI (Wildland-Urban Interface) — Areas where development meets wildland. Subject to defensible-space requirements; mostly UT mountain communities.
Z
Zero-down — Standard VA loan feature. No down payment required.
Term you encountered that's not here? Email Mike and he'll add it — this glossary grows as UT Veterans ask new questions.