Glossary
Real estate lending terms
Plain-language definitions for the words investors search — DSCR, bridge, hard money, LTC, AIVAA™, and more. Numbers match the published rate card and claims register.
- AIVAA™
- Amortization
- ARV (After-Repair Value)
- Bridge loan
- Business-purpose loan
- Cash-out refinance
- Construction loan
- Direct lender
- DSCR (Debt Service Coverage Ratio)
- DSCR calculator
- Entity borrower
- Exit fee
- Fix & Flip loan
- F.L.E.X. 50™
- Foreign national loan
- Hard money loan
- Interest-only
- Interest reserve
- LTC (Loan-to-Cost)
- LTV (Loan-to-Value)
- Non-QM
- Origination fee
- PITIA
- Private money
- Proof of funds letter
- Purchase loan
- Rate-and-term refinance
- Rate floor
- Rehab draw
- Seasoning
- Second lien
- Soft credit pull
- Term sheet
- Title clear
- AIVAA™
- AIVAA™ — AI Valuation & Analytics Assessment. Proprietary property evaluation for lender risk assessment — not a licensed appraisal. Marketing valuation in minutes; full audit-ready report in 4-6 hours.
- Amortization
- The schedule that pays down principal over time. DSCR loans often offer 30-year amortization with interest-only options on qualifying files.
- ARV (After-Repair Value)
- Estimated market value of a property after planned renovations are complete. Used to size fix-and-flip and rehab loans.
- Bridge loan
- Short-term financing to buy, reposition, or stabilize investment property before sale or long-term debt. Published bridge rate floor is 10.99%.
- Business-purpose loan
- Business-purpose lending in 48 states. Loans on this site are for investment and commercial use — not owner-occupied primary residences.
- Cash-out refinance
- Replacing an existing loan with a larger one and taking the difference in cash. On DSCR, qualification still runs on the property’s rents.
- Construction loan
- Financing for ground-up builds with draws as work progresses. Published construction rate floor is 10.99%.
- DSCR (Debt Service Coverage Ratio)
- Rental loan qualification based on the property's income versus its debt payment — not the borrower's personal tax returns. Published DSCR rate floor is 7.00%.
- DSCR calculator
- Tool that divides monthly rent (or NOI) by monthly debt service to show whether a rental qualifies on DSCR.
- Entity borrower
- A company (often an LLC) that holds title and is the named borrower on a business-purpose loan. Common on investment property files.
- Exit fee
- A fee due when the loan is paid off or refinanced. Published DSCR and bridge exit fees start at 0.50% on the rate card.
- Fix & Flip loan
- Purchase plus renovation financing with rehab draws, typically sized to after-repair value. Qualifying deals can reach up to 100% LTC.
- F.L.E.X. 50™
- Light-documentation emergency bridge at a maximum 50% LTV. Published flat rate 15.00% with 5.00% origination.
- Foreign national loan
- Investment property financing for borrowers without a U.S. Social Security number or with ITIN documentation. Status describes the borrower — not a separate product shell.
- Hard money loan
- Asset-based short-term real estate loan secured by the property rather than income documentation. At CR Equity AI, hard money sits on the same direct-lender bridge book — not a marketplace.
- Interest-only
- A payment structure where the borrower pays interest without reducing principal for a stated period. Available on some DSCR and bridge structures.
- Interest reserve
- Prepaid interest held at closing to cover payments during rehab or lease-up. Common on bridge and F.L.E.X. 50™ files.
- LTC (Loan-to-Cost)
- Loan amount divided by total project cost (purchase plus rehab). Used on fix-and-flip and construction-style files. Always say “up to” when quoting max LTC.
- LTV (Loan-to-Value)
- Loan amount divided by property value. F.L.E.X. 50™ caps at 50% LTV. Soft credit pull applies wherever LTV grids appear.
- Non-QM
- A mortgage that does not meet Qualified Mortgage rules. CR Equity AI’s investor products are business-purpose and priced outside consumer QM frameworks.
- Origination fee
- Fee charged to originate the loan, usually a percent of the loan amount. Published floors are on /rates — for example bridge 1.50%, F.L.E.X. 50™ 5.00%.
- PITIA
- Principal, interest, taxes, insurance, and association dues — the monthly housing payment used in DSCR and underwriting math.
- Private money
- Capital from a non-bank lender for investment real estate. Overlaps with hard money and bridge in search language; CR Equity AI is a direct private lender.
- Proof of funds letter
- Letter confirming a buyer has capital or financing capacity for an offer. CR Equity AI issues proof-of-funds letters for qualifying investors.
- Purchase loan
- Business-purpose financing to acquire investment property. Loan range $75K-$100M. Soft pull to see terms.
- Rate-and-term refinance
- Replacing a loan to change rate or term without taking cash out. On DSCR, still qualifies on the property’s rent.
- Rate floor
- The published starting rate on a program — not a guaranteed final rate. Final pricing is on the executed term sheet. National floors: DSCR 7.00%, bridge 10.99%, F.L.E.X. 50™ 15.00%.
- Rehab draw
- A partial release of renovation funds after work is inspected or documented. Keeps contractors paid on fix-and-flip and construction files.
- Seasoning
- How long a borrower or property must hold title or a loan before a refinance or cash-out is allowed. Program rules vary — confirm on the term sheet.
- Second lien
- A loan behind an existing first mortgage. CR Equity Mini 250 is a Non-QM second-lien product up to $250,000 on qualifying files.
- Term sheet
- Written offer of loan terms. Real terms in 5 minutes. Final pricing is only on the executed term sheet.
- Title clear
- Funded in as little as 48 hours once title is clear on qualifying files — meaning liens and ownership issues are resolved enough to close.
Looking for published floors and fees? See rates & terms.