Mortgage Glossary — 45 Terms

Debt-Service Coverage Ratio — rents ÷ PITIA

Loan-to-Value ratio

Principal + Interest + Taxes + Insurance + Assoc dues

Credit scoring model used by lenders

Debt-to-Income ratio (not used on DSCR)

Nationwide Multistate Licensing System

Individual Taxpayer Identification Number

Investment-property loan based on rental income

Non-QM loan using 12/24 mo statements

Non-Qualified Mortgage (outside CFPB QM rules)

Prime Time path for independent contractors

Eligible assets ÷ 84 = monthly income

CPA-prepared income documentation

FNMA Form 1005 employment verification

5-8 unit / 2-8 mixed-use program

CFPB-defined mortgage category

Refi that returns equity as cash

Refi changing rate/term only

Payment covers only interest initially

Adjustable Rate Mortgage

Same rate for the whole term

Buy, Rehab, Rent, Refinance, Repeat strategy

Airbnb / VRBO / nightly rental

12+ month residential lease

Net Operating Income ÷ Property Value

Annual cash flow ÷ cash invested

STR data platform; accepted for DSCR docs

Vacation Rentals By Owner platform

Non-U.S. citizen borrower

Treaty business owner visa

U.S. loan for non-immigrant visa holders

Time since last BK/FC/SS/etc.

Mortgage/rental payment record (e.g., 0x30x12)

PITIA multiples held post-close

Reported credit accounts

Holding property in an LLC

Condominium operated like a hotel

Condo failing Fannie/Freddie criteria

Combined residential + commercial building

Fannie/Freddie conforming loan

Loan above conforming limits

Short-term, high-rate asset-secured loan

Bank-held mortgage, not sold on secondary

Government-insured primary residence loan

VA-guaranteed loan for service members