Terms with Tag Qualification

  • Combined Loan-to-Value (CLTV) Bank, Very Important,
    • The connection between the unpaid principal balances of all the mortgages on a property (first and second usually) and the property's appraised value (or sales price, if it is lower).
    A term used by mortgage lenders and mortgage underwriters.
  • Credit Rating (CR) Bank, Very Important,
    • A judgement of a person's ability to repay debts. The rating is often based on a person's current and projected income and past debt payment history. Also called a credit score.
    A metric to measure the credit worthiness of a debtor.
  • Credit Report (CR) Bank, Very Important,
    • A report on a loan applicant's willingness and ability to make payments in a timely manner in the past. This report is provided to the bank by an outside agency.
    A report that outlines the credit worthiness of an individual or entity.
  • Estimated Rental Value (ERV)Acronym,
    • Limited Income Verification (LIV)Acronym,
      • Loan-to-Value (LTV) Bank, Very Important,
        • The ratio of the principal amount of the loan to the lesser of the purchase price of the property or the property's appraised value. This can be expressed as an 80% loan, or 80% LTV.
        A widely used term in the mortgage brokerage and lending industry, especially by mortgage underwriters.
      • Low to Moderate Income Borrower (LMIB)Acronym,
        • No Income No Asset (NINA)Acronym,
          • Non-Income Qualified (NIQ)Acronym,
            • Principal, Interest, Taxes, Condo fees, Heat (PITCH)Acronym,
              • Principal, Interest, Taxes, Heat (PITH)Acronym,
                • Rental Income from Property (RIP)Acronym,
                  • Self Employed (S/E)Acronym,
                    • Self-employed Stated Income (SSI)Acronym,
                      • Total Debt Service (TDS) Acronym, Important,
                        • The ratio of a borrower's total monthly debt payments to his or her monthly gross income. Lenders use this ratio to determine how much of a loan a borrower is qualified for.
                      • Total Debt Service Ratio (TDSR)Acronym,
                        • Total Expense Ratio (TER) Bank,
                          • The percentage of monthly debt payments compared to total before-tax income.
                        • Traditional Verifable Income (TVI)Acronym,
                          • Verbal Verification of Employment (VVOE)Acronym,
                            • Verification of Employment (VOE) Bank, Important,
                              • Confirmation that a loan applicant is telling the truth about where he or she works and how much he or she makes.
                            • Wage Earner (W/E)Acronym,
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