Affordability and Qualification

Required portion of mortgage transaction funds that must come from the borrower's own eligible resources when a program imposes that rule.

Debt a mortgage borrower remains legally obligated to pay even though another person or business is expected to make the payments.

Person or permitted entity providing mortgage gift funds or equity without requiring repayment.

HCLTV measures property leverage using the first mortgage and the full available HELOC line under the applicable convention.

Future employment income supported by an accepted offer or contract that may qualify under program-specific timing and documentation rules.

Qualifying ratios compare proposed housing and total monthly debt obligations with accepted gross income.

Loan-level credit score selected from borrower scores for specified mortgage eligibility or pricing decisions.

Monthly income remaining after taxes, shelter expense, debts, and specified obligations, used prominently in VA underwriting.

Program-provided funds that help eligible home buyers cover a down payment or other approved purchase costs.

Property cash-flow ratio used to judge whether rental income can cover the mortgage debt service.

Program eligibility status generally based on recent ownership history rather than whether someone has ever owned a home.

Recurring association charges included in the housing expense used for mortgage qualification.

Account owned by someone else that the borrower may use and that can receive separate mortgage credit review.

Required monthly card payment commonly included as revolving debt in mortgage qualification.

Creditor accounting status for seriously delinquent debt that can still affect mortgage underwriting.

Past-due debt in collection that may affect mortgage credit analysis, liabilities, or closing conditions.

Student debt with temporarily postponed payments that may still count in mortgage qualification.

Credit-report account challenged by the borrower that may require accuracy and liability review in underwriting.

The required monthly amount on a debt account that a lender may include in mortgage debt-to-income calculations.

Student-debt amount accepted or calculated for the borrower's mortgage debt-to-income ratio.

Documented spousal support a borrower chooses to use as income when qualifying for a mortgage.

An underwriting method that converts eligible net assets into a monthly qualifying-income amount.

Back-end ratio compares proposed housing expense plus other counted monthly debts with qualifying gross income.

Periodic extra compensation that may count for a mortgage after history, trend, and continuance review.

Acceptable liquid or near-liquid assets left after closing, often measured in months of the proposed housing payment.

Documented child support a borrower chooses to use as income when qualifying for a mortgage.

Sales- or production-based earnings reviewed through history, trend, and averaging for mortgage qualification.

Numeric estimate of credit risk that can affect mortgage eligibility, pricing, and underwriting review.

Revolving balances compared with available credit, a ratio that can influence mortgage credit assessment.

DTI compares accepted monthly debt obligations with qualifying gross monthly income during mortgage underwriting.

A borrower's recent work record, which lenders review to judge whether employment income is stable and likely to continue.

Front-end ratio compares the proposed monthly housing expense with qualifying gross monthly income.

Income scheduled to begin or increase after mortgage application that may qualify when timing and terms are sufficiently documented.

Income before payroll deductions, used as the starting denominator for mortgage qualification ratios.

The full recurring cost of a home used in mortgage qualification, including the loan payment and applicable property charges.

Debt repaid through scheduled installments that can add a recurring payment to mortgage DTI.

Borrower debts and financial obligations reviewed for mortgage repayment capacity and DTI.

Cash and readily convertible assets evaluated for mortgage closing funds, reserves, or file strength.

Recurring payments a mortgage lender counts with housing expense when calculating total debt burden.

Pay for extra work hours that may count as qualifying income after history and trend review.

Earnings from a reduced or secondary work schedule that may support mortgage qualification when stable.

Material increase in housing payment when a borrower takes a new mortgage or a loan enters a higher-payment phase.

Estimated full monthly housing cost for the property and mortgage being evaluated.

Documented assets a lender accepts for a specific mortgage purpose, such as closing funds, reserves, or income support.

Income the lender accepts for mortgage qualification after documentation and stability review.

Mortgage payment amount required by underwriting rules to test the borrower's repayment capacity.

Rent from real property that may offset housing debt or add qualifying income after mortgage review.

Reserve requirements specify how much eligible post-closing liquidity a mortgage borrower must retain.

Pension, annuity, or retirement-account payments evaluated for amount, receipt, and continuance.

Open-ended credit whose changing balance and required payment can affect mortgage credit review and DTI.

Earnings from work that recurs during particular seasons and may be annualized for mortgage qualification.

Income from business ownership or independent work analyzed through tax records and business cash flow.

Income a lender considers documented, dependable, and reasonably likely to continue during mortgage repayment.

Earnings that fluctuate and require history, trend, and averaging analysis for mortgage qualification.

Money documented as owned, available, and acceptable for closing or mortgage reserves.

Mortgage qualification terms that explain income ratios, credit strength, and the lender's view of repayment capacity.

CLTV compares the first mortgage plus applicable subordinate debt with the property's underwriting value.

A person who applies for a mortgage with another borrower and shares legal responsibility for the entire debt.

Person who signs or guarantees a mortgage obligation to support repayment without necessarily occupying or owning the home.

Purchase-price portion not financed by the first mortgage or other permitted purchase financing.

Money given without repayment for an eligible mortgage purpose, subject to donor, source, transfer, and documentation rules.

Signed mortgage document identifying a proposed gift and confirming that the funds do not have to be repaid.

Value contributed by an eligible seller through a below-market home sale rather than through a separate cash transfer.

LTV compares the first-mortgage amount with the property-value benchmark used for underwriting.

Mortgage co-borrower who shares full repayment responsibility but does not plan to occupy the financed home.

Tentative lender willingness to finance up to a stated amount under documented assumptions, commonly used during home shopping.

Early mortgage estimate based on preliminary borrower information, with review depth and terminology varying by lender.