Credit & UnderwritingDTI
Debt-to-Income Ratio (DTI)
A key underwriting metric that measures the percentage of your gross monthly income committed to recurring debt payments.
📚 Financial Knowledge Base
Financial Industry Glossary & Underwriting Guide
Master essential home mortgage, auto financing, interest rate, and underwriting terminology with interactive calculators, mathematical formulas, and practical lending guidelines.
Terms Starting With "F"
Showing 10 definitionsCredit & UnderwritingFICO
FICO Score
A 3-digit credit scoring model developed by the Fair Isaac Corporation ranging from 300 to 850 that predicts credit risk.
Credit & Underwriting
Credit Utilization Ratio
The percentage of your total revolving credit limit that you are currently borrowing across all credit card accounts.
Credit & Underwriting
Mortgage Underwriting
The detailed risk assessment process conducted by a lender to evaluate a borrower’s credit, capacity, and collateral before granting final loan approval.
Credit & Underwriting
Hard Credit Inquiry
A formal credit check recorded on your credit report when a financial institution reviews your file to make a lending decision.
Credit & UnderwritingAUS
Automated Underwriting System (DU & LPA)
Algorithmic risk-assessment engines used by Fannie Mae (Desktop Underwriter) and Freddie Mac (Loan Product Advisor) to issue instant mortgage eligibility decisions.
Credit & UnderwritingDSCR
Debt Service Coverage Ratio (DSCR)
The primary investment-property underwriting ratio that measures whether a rental property’s cash flow is sufficient to cover its recurring mortgage debt obligations.
Credit & UnderwritingARV
After Repair Value (ARV) & The 70% Rule
The projected fair market value of a distressed real estate property after all planned renovations and structural upgrades have been completed.
Credit & UnderwritingGRM
Gross Rent Multiplier (GRM)
A rapid first-pass real estate screening ratio that compares a rental property’s purchase price to its gross annual rental income before operating expenses.
Credit & UnderwritingLTC
Loan-to-Cost Ratio (LTC)
A commercial and construction lending metric that compares the total loan commitment to the total direct hard and soft costs of acquiring and building or renovating a project.