Knowledge Center
Real Estate Lending Glossary
Plain-English definitions of the terms investors, borrowers, and brokers run into most, from DSCR and ARV to draw schedules and cap rates.
Loan Types
What Is a DSCR Loan?
A DSCR loan (short for Debt Service Coverage Ratio loan) is a type of real estate investment mortgage that qua...
What Is a Fix and Flip Loan?
A fix and flip loan is short-term, asset-based financing designed specifically for real estate investors who p...
What Is a Hard Money Loan?
A hard money loan is a type of short-term, asset-based real estate financing provided by private lenders rathe...
What Is Ground-Up Construction Financing?
Ground-up construction financing provides capital to build a new structure on vacant land or on a lot where an...
What Is an RTL Loan?
An RTL loan, short for residential transition loan, is a short-term, business-purpose loan for an investor who...
Key Concepts
LTV vs LTC vs ARV: What's the Difference?
When evaluating a real estate investment loan, three ratios matter most: Loan-to-Value (LTV), Loan-to-Cost (LT...
What Is a Cap Rate?
Capitalization rate (the 'cap rate') is the most widely used metric in commercial real estate valuation. It ex...
What Is a Blanket Loan in Real Estate?
A blanket loan, also called a portfolio loan, is a single mortgage that covers two or more properties under on...
Interest Reserve Explained: What It Is and How It Works
An interest reserve is a portion of a real estate loan, set aside at closing, that is designated to cover inte...
What Is a Draw Schedule in a Construction Loan?
A draw schedule is the predetermined plan for disbursing construction loan funds in stages (called draws) as s...