ID VA loan glossary
Program figures verified July 2026. Details change; confirm your scenario with us.
Mike Certo · Cornerstone First Mortgage · NMLS #260555 ·
VA loans + ID-specific Veteran programs have a vocabulary of their own. This glossary collects the terms Veterans actually encounter, plain-English definitions, and ID-relevant context where useful. Bookmark this page.
A
AMI (Area Median Income): Income benchmark used by Idaho Housing (IHFA) down payment assistance to determine eligibility. IHFA also sets a household income limit that varies by county for its DPA second mortgage.
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 ID market.
B
BAH (Basic Allowance for Housing): Monthly housing stipend paid to active-duty service members. Varies by base + rank + dependent status. Set by the Mountain Home/Elmore and Boise/Ada Military Housing Areas for Idaho's bases. 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).
CID (Community Infrastructure District): Special assessment districts in some ID planned communities. 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 ID 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.
Community property: Idaho is a community property state. Means spouse has automatic 50% interest in property acquired during marriage. Affects how VA loans are titled + how divorce + 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 ID baseline: $832,750 in 43 of 44 counties; Teton County $1,249,125 (high-cost).
D
Defensible space: Cleared/maintained vegetation around a home in wildfire-prone areas. Required by VA MPR + ID 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. 10%+ = waives VA funding fee. A 100% rating in Idaho qualifies for the disabled-Veteran property tax reduction — up to $1,500 off the home and one acre, no income limit (a capped reduction, not a full exemption).
DPA (Down Payment Assistance): Idaho Housing (IHFA) provides a repayable second mortgage up to 8% of the sales price to help with down payment + closing costs, repaid monthly over a set term, one per transaction, with a minimum credit score (typically around 620) and Finally Home! homebuyer education. 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 ID EMD is 1% of price; 2-3% strengthens VA offers in competitive markets.
Entitlement: The VA's guaranty backing your loan. With full entitlement the VA guarantees 25% of the loan amount — about $208,000 on a baseline-limit loan in 2026 — and there is no cap on loan size. With partial entitlement (an active prior VA loan), your $0-down amount is limited by the county loan limit.
Escrow account: Account where lender holds property tax + insurance funds and pays them when due. Most ID VA loans use escrow.
F
FAIR Plan (ID FAIR Plan): Insurance of last resort for homes that can't get standard market insurance — typically high-wildfire-risk ID properties. More expensive, more limited coverage.
FHFA limit: Federal Housing Finance Agency conforming loan limit. 2026 baseline: $832,750 in 43 of Idaho's 44 counties; Teton County is high-cost at $1,249,125.
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
Gowen Field: Idaho National Guard installation at Boise Airport in Ada County. Home to the Idaho Air National Guard 124th Fighter Wing (transitioning from the A-10 to the F-16) and the Idaho Army National Guard. Members here use the Boise/Ada BAH rate. Base hub page.
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
Homestead exemption (disabled-Veteran property tax reduction): Idaho's property tax benefit for 100% service-connected disabled Veterans. Reduces the bill by up to $1,500 on the home and one acre, with no income limit. It is a capped reduction, not a full exemption. Full guide.
HOA (Homeowners Association): Community association charging monthly/annual fees for shared amenities + maintenance. Common in ID master-planned communities. Affects VA DTI calculation.
Finally Home!: Idaho Housing (IHFA) homebuyer education course required before closing on an IHFA loan or down payment assistance. Counts toward the program's education requirement statewide.
I
IRRRL (Interest Rate Reduction Refinance Loan): VA simplify 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 ID). Veterans 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 ID. 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).
Lender credit: Money the lender applies toward a Veteran's closing costs, usually in exchange for a higher note rate. Can pair with VA seller concessions to reduce cash needed at closing.
M
MCC (Mortgage Credit Certificate): Federal tax credit for a portion of mortgage interest paid. IHFA's MCC/Tax Credit program is currently suspended — it is not available to new Idaho borrowers. Existing MCC holders keep claiming their credit.
MHA (Military Housing Area): Geographic area used to set BAH rates. Mountain Home AFB falls in the Mountain Home/Elmore MHA; Gowen Field in the Boise/Ada MHA.
Mountain Home AFB: Mountain Home Air Force Base in Elmore County, about 40 miles southeast of Boise. Home of the 366th Fighter Wing flying the F-15E Strike Eagle. Buyers here use the Mountain Home/Elmore BAH rate. Base hub page.
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
Property tax reduction (disabled Veteran): Idaho benefit that takes up to $1,500 off the property tax bill on the home and one acre for 100% service-connected disabled Veterans, with no income limit. A capped reduction, not a full exemption. Full guide.
PCS (Permanent Change of Station): Military relocation between duty stations. 60-day window from arrival for VA primary-residence occupancy. Summer PCS 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 ID 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 ID 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 ID 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 ID Veterans ask new questions.