- DSCR
- Debt service coverage ratio. Monthly rent divided by the monthly payment.
- PITIA
- Principal, interest, taxes, insurance and association dues. The full monthly payment used in the ratio.
- LTV
- Loan-to-value. The loan amount as a percentage of the property's value.
- ARV
- After-repair value. What the property should be worth once the rehab is done.
- Seasoning
- How long you've owned a property before a lender will use its new value.
- Reserves
- Cash or liquid assets you have left after closing, usually counted in months of payments.
- Prepayment penalty
- A fee for paying off the loan early, usually during the first few years.
- Rate-and-term refinance
- A refinance that changes the rate or term without taking out meaningful cash.
- Cash-out refinance
- A refinance that pays off the old loan and returns some of your equity as cash.
- Bridge loan
- Short-term financing used until a property qualifies for long-term financing.
- Hard money
- Short-term, asset-based financing, often used for purchases and rehabs.
- Warrantable condo
- A condo project that meets standard agency guidelines.
- Rent schedule
- The appraiser's estimate of market rent for the property (often Form 1007).
- BRRRR
- Buy, rehab, rent, refinance, repeat.
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