Tax & 1031 Tax Lien A government claim against property for unpaid taxes, which takes priority over most other liens.
Tax & 1031 Tenant-in-Common (TIC) 1031 Replacement property structure where investors hold fractional title together.
Underwriting & Metrics Add-Back Non-cash expenses added back to income when underwriting a self-employed borrower.
Underwriting & Metrics Automated Underwriting Software-driven loan evaluation systems like Fannie Mae’s DU and Freddie Mac’s LPA.
Underwriting & Metrics Back-End DTI Total monthly debt payments (housing + other) divided by gross monthly income.
Underwriting & Metrics Capacity A borrower’s ability to repay a loan based on income and other obligations.
Underwriting & Metrics Capital (Underwriting) A borrower’s savings or assets available beyond what’s needed for a transaction.
Underwriting & Metrics Character (Underwriting) A borrower’s credit history and reputation for repaying obligations.
Underwriting & Metrics Collateral An asset pledged as security for a loan, which the lender can seize on default.
Underwriting & Metrics Combined Loan-to-Value (CLTV) The sum of all loans against a property divided by the property’s value.
