Mortgage Terminology
What type of refinance involves withdrawing equity from the property?
What is a Cash-Out Refinance
What does DSCR stand for, and what does it measure?
What is Debt-Service Coverage Ratio, which measures rental income relative to debt obligations
This type of property includes units that are part of a shared structure but owned individually. What is it?
What is a Condominium
What is the minimum credit score required for a Foreign National Full Doc loan?
What is No score or 660
What is the legal document that secures a loan by pledging property as collateral?
What is a Mortgage
What is the maximum DTI on our DSCR Loan Program?
What is none, there is no income on a DSCR loan
Properties with both residential and commercial spaces, such as a storefront with an apartment above, are called what?
What is a Mixed-use Property
What occupancy type must a Foreign National purchase under A&D guidelines?
What is an Investment Property only
What is a loan feature that allows borrowers to reduce their monthly payments temporarily called?
What is a Temporary Buydown
What is the maximum allowable LTV and minimum required credit score for a DSCR loan with .50 DSCR?
What is 70% and 680
Properties with non-standard eligibility that don’t meet traditional financing guidelines are referred to as what?
What are Non-Warrantable Condos
What is the maximum LTV for Foreign Nationals “Full Doc” Loan?
What is 75%
This is a type of loan for which the interest rate can change, usually in relation to an index interest rate.
What is an Adjustable Rate Mortgage or ARM
Cash-out proceeds from a DSCR loan must be used for what purpose?
What is a Business Purpose
What is the term for housing that is built off-site and then transported to the property?
What is a Manufactured Home
What is the maximum LTV allowed for a Foreign National DSCR loan?
What is 70%
What is the process of a borrower selling their home for less than the outstanding mortgage balance?
What is a Short Sale
What is the maximum allowable LTV for a DSCR loan when financing points?
What is 70%
This type of property, often part of a resort, includes hotel-like amenities and short-term rental restrictions. What is it?
What is a Condotel
What are the current restrictions for Russian or Ukrainian borrowers?
What is DSCR Program only, income and assets derived from Russia and Ukraine will not be accepted