Affordability and Qualification

Credit account where the borrower can use another person's account, sometimes reviewed separately in mortgage underwriting.

Seriously delinquent debt status that can affect mortgage credit review even when regular billing has stopped.

Past-due account sent to collections that can affect mortgage credit review and underwriting conditions.

Required credit-card payment commonly counted as a revolving debt obligation in mortgage DTI.

Student debt not currently in repayment that may still require a qualifying payment in mortgage underwriting.

Credit-report item challenged by the borrower that may require mortgage underwriting review or correction.

Smallest required monthly debt payment that may be used when calculating mortgage DTI.

Student debt payment used in mortgage DTI, including reported, documented, or guideline-calculated amounts.

Support income from alimony that may be reviewed for documentation and continuance before mortgage qualification.

Qualification method that converts acceptable assets into an income-like amount for mortgage review.

Back-end ratio compares housing cost plus other recurring monthly debt obligations to gross monthly income.

Extra compensation that may need history and continuity review before it supports mortgage qualification.

Post-closing liquid funds that show a borrower has cushion after completing the mortgage transaction.

Support income for a child that may be reviewed for documentation and continuance before mortgage qualification.

Variable sales-based income that may need history and averaging before it supports mortgage qualification.

Credit score is a numeric summary of credit behavior that lenders use as one input in mortgage approval and pricing.

Share of available revolving credit being used, which can affect mortgage credit strength.

DTI compares monthly debt obligations to gross monthly income to show how heavy the borrower's recurring debt load is.

Borrower's work record used to evaluate income stability and mortgage qualification.

Front-end ratio compares monthly housing cost to gross monthly income during mortgage qualification.

Income expected to begin after application that may need strong documentation before it supports mortgage qualification.

Income before deductions, used as the denominator in many mortgage qualification ratios.

Recurring housing cost used in mortgage qualification, often including payment, taxes, insurance, and dues.

Debt with scheduled payments over a set term, commonly counted in mortgage DTI.

Borrower debts and obligations reviewed during mortgage application and underwriting.

Cash or readily accessible assets a borrower may use for closing funds, reserves, or mortgage strength.

Recurring required debts counted in mortgage affordability and DTI calculations.

Extra pay above regular base earnings that may be reviewed before it counts for mortgage qualification.

Income from part-time work that may support mortgage qualification when it is documented and stable enough.

Increase from the borrower's current housing payment to the proposed mortgage payment.

Estimated housing payment a lender uses to test the mortgage being requested.

Assets a lender accepts for down payment, closing funds, reserves, or qualification support.

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

Mortgage payment amount a lender uses to test whether the borrower qualifies.

Income from renting property that may be reviewed for mortgage qualification.

Reserve requirements are lender expectations that the borrower still has enough cash or liquid assets after closing.

Income from retirement sources that may support mortgage qualification when documented and expected to continue.

Open-ended credit obligation, such as a credit card, that can affect mortgage credit review and DTI.

Income earned in recurring seasonal work that may need history and continuity review for mortgage qualification.

Business or independent-work income reviewed for mortgage qualification through documentation and stability analysis.

Income pattern a lender views as reliable enough to support mortgage repayment.

Income that fluctuates and may need averaging or extra documentation for mortgage qualification.

Borrower funds the lender has documented and accepted for use in a mortgage file.

A co-borrower is a person who applies for the mortgage with another borrower and shares legal responsibility for repayment.

CLTV compares all mortgage debt secured by the property with the home's value, not just the first mortgage.

A cosigner is a person who signs the mortgage obligation to support approval and shares repayment responsibility, even if they are not the main occupant.

Down payment is the portion of the home's price the borrower pays upfront instead of financing.

Gift funds are money given to the borrower for mortgage-related costs such as down payment or closing expenses, subject to lender rules.

A gift letter is the lender-requested document stating that funds provided to the borrower are a gift rather than a loan.

A gift of equity is a home-sale price reduction from the seller to the buyer that functions as a gifted equity contribution instead of cash.

LTV compares the mortgage amount with the home's value to show how much leverage is being used in the deal.

A non-occupant co-borrower is a co-borrower who signs for the mortgage but does not plan to live in the property.

Preapproval is a stronger lender review indicating the borrower appears to qualify under an identified mortgage framework.

Early lender estimate of mortgage fit based on preliminary borrower information rather than full documentation.

DSCR compares property cash flow with debt obligations and is often used in mortgage contexts where rental income drives qualification.

Homeowners association dues are recurring charges paid to an HOA that lenders often count when evaluating mortgage affordability.

Residual income is the amount of income remaining after major monthly obligations are paid, used in some mortgage programs as a repayment-capacity test.