REAL ESTATE DICTIONARY… U

U.S. Department of Agriculture (USDA) – The United States Department of Agriculture (USDA), also known as the Agriculture Department, is the U.S. federal executive department responsible for developing and executing federal laws related to farming, forestry, rural economic development, and food. It aims to meet the needs of farmers and ranchers, promotes agricultural trade and production, works to assure food safety, protects natural resources, fosters rural communities and works to end hunger in the United States and internationally. More info at USDA.org

U.S. Department of Housing and Urban Development (HUD) – the purpose of HUD is to provide housing and community development assistance and to make sure everyone has access to “fair and equal” housing. More info at HUD.gov

U.S. Department of Veterans Affairs (VA) – The Department of Veterans Affairs runs programs benefiting veterans and members of their families. It offers education opportunities and rehabilitation services and provides compensation payments for disabilities or death related to military service, home loan guaranties, pensions, burials, and health care that includes the services of nursing homes, clinics, and medical centers. More Info at VA.gov

Under Contract or Pending – the seller has accepted an offer with the potential buyer. That doesn’t mean that the deal is done and closed.

Underwriting – loan underwriters are individuals that evaluate and ultimately approve or reject a loan request submitted by an applicant. As part of the process, the person verifies the data provided by the potential debtor, including his or her employment information, references, and other data requested. Normally, underwriting also involves running credit checks on the applicant. Once the underwriter is satisfied that the applicant is a worthy credit risk, the loan is granted.

USDA Loan – USDA loans offer very low effective interest rates (some are as low as 1 percent) and don’t require a cash down payment. To qualify, you need to have a decent credit history. Not all properties qualify for USDA loans, to see if you qualify go to USDA Loan Eligibility.