Underwriting & Metrics Credit Score Tiers Common bands: 760+ excellent, 700-759 good, 660-699 fair, below 660 challenging.
Underwriting & Metrics Debt Stack All outstanding obligations a borrower carries, considered together in underwriting.
Underwriting & Metrics Debt Yield Net operating income divided by loan amount, used by commercial lenders.
Underwriting & Metrics Debt-Service Coverage Ratio (DSCR) Net operating income divided by total debt service — a key commercial underwriting metric.
Underwriting & Metrics Debt-to-Income Ratio (DTI) Monthly debt obligations divided by gross monthly income, used to gauge borrowing capacity.
Underwriting & Metrics Disposable Income Income remaining after taxes, used in some manual underwriting calculations.
Underwriting & Metrics FICO Score A credit score model developed by Fair Isaac Corporation, ranging from 300 to 850.
Underwriting & Metrics Gross Rent Multiplier (GRM) Property price divided by gross annual rental income — a quick valuation screen.
Underwriting & Metrics Income Documentation W-2s, tax returns, pay stubs, and bank statements used to verify a borrower’s earnings.
Underwriting & Metrics Inquiries Records of credit checks — too many in a short window can lower scores.
Underwriting & Metrics Layered Risk Loans with multiple high-risk factors (low credit, high LTV, low reserves) requiring extra scrutiny.
Underwriting & Metrics Loan Estimate Comparison Reviewing multiple lender estimates side-by-side to choose the best terms.
