Real Estate Investor Lending Glossary — DSCR, ARV, LTC & 24 Terms Defined

The ratios and values

DSCR — Debt Service Coverage Ratio: Monthly rent ÷ monthly payment (PITIA). 1.0 means rent exactly covers the payment; 1.2+ earns better pricing. The number the whole DSCR loan category is named for — full mechanics in DSCR Loans Explained.
PITIA: Principal, Interest, Taxes, Insurance, Association dues — the full monthly payment, and the denominator in the DSCR math.
ARV — After-Repair Value: What the property appraises for once the planned renovation is done, defended by closed comps. Flip loans are sized off it — and misjudging it is the #1 first-deal killer. See ARV explained.
LTC — Loan-to-Cost: Loan ÷ (purchase + rehab). Decides your cash-to-close. SLA funds up to 92.5% LTC on Fix & Flip for experienced borrowers.
LTV — Loan-to-Value: Loan ÷ appraised value. On rehab loans the "value" is often ARV (you'll see "LTARV"). DSCR caps: 80% purchase / 75% cash-out at SLA.
DTI — Debt-to-Income: The conventional-mortgage qualifier: your personal debts ÷ your income. DSCR loans don't use it — that's the point. See DSCR vs. Conventional.

Bridge loan / hard money loan: Short-term (6–24 months), interest-only financing secured by the deal itself — the tool that buys and renovates property that isn't stabilized yet. Hard money vs. DSCR settles which one your deal needs.
Business-purpose loan: A loan for investment use, not personal housing — exempt from consumer-mortgage rules, which is what legally enables no-income-doc underwriting and LLC borrowers. Every SLA loan is one.
Non-QM: The loan category outside Qualified Mortgage rules; DSCR loans live here. Underwritten to the asset instead of tax returns.
Portfolio (blanket) loan: One note secured by multiple rentals — 2–10 properties at SLA — so a scaling investor carries one payment instead of seven.
Interest-only (I/O): Payments cover interest only. Standard on bridge; available as a 5-year DSCR option when cash flow matters more than amortization.

Seasoning: How long you must own a property before a cash-out refi can use the new appraised value instead of your purchase price. Conventional: 12 months. The DSCR standard — including SLA — is 6. The full math.
Cash-out refinance: A refi larger than your current balance — equity out as cash. Lower LTV cap (75%) and seasoning rules apply.
Rate-and-term refinance: A refi that just replaces the existing loan — no equity out. Priced better: up to 80% LTV at SLA.
Delayed financing: The all-cash buyer's exception: refinance immediately and recover purchase price + costs — but not appreciated equity — without waiting out seasoning.
Prepayment penalty: A declining fee (e.g., 5-4-3-2-1) for early payoff in a DSCR loan's first years. Bridge loans generally have none — you're supposed to exit fast.
BRRRR: Buy, Rehab, Rent, Refinance, Repeat — acquire on bridge, stabilize, refi into DSCR, recycle the capital. The two-loan playbook with real numbers.

Draw: A staged release from the rehab/construction budget after an inspection verifies completed work. Interest accrues on the drawn balance only (confirm that term!). How draws work.
Spec home: A home built without a buyer under contract — sold or rented at completion. Ground-up financing, explained.
Dry-in: Framed, roofed, weather-tight — the milestone that typically anchors a mid-build draw.
Mechanic's lien: A claim contractors can record against the property for unpaid work. Lenders re-check title between draws for exactly this; collect lien waivers as you pay subs.

Form 1007 (market rent report): The appraisal addendum establishing market rent. It's why a vacant property — or an Airbnb — closes a DSCR loan with no lease at SLA.
Personal guaranty: The LLC's members standing behind the entity's loan personally. The entity shields you from the property's liabilities — not from your own loan. LLC lending, explained.
Points: Upfront origination fees; 1 point = 1% of the loan. Compare them together with rate — a teaser rate with heavy points isn't cheap.

Two-minute application, real term sheet — every term above, with your numbers in it.