Glossary
Lending and platform terms in plain English, and where you meet each one in LendingWise.
Each term says where you meet it in LendingWise. Tab names are the platform defaults — your company may have renamed some.
Terms
| Term | What it means | Where you meet it |
|---|---|---|
| APR | Annual percentage rate — the effective rate once fees and points are included. | Loan Info; generated disclosures |
| ARV | After-repair value — what the property will be worth once the work is done. | Property Info; Deal Analysis |
| ARV-LTV | The loan as a percentage of after-repair value. The main risk measure on a fix and flip. | Deal Analysis; capped per program |
| Branch | A sub-account under your company, with its own users, originators and branding. | CRM → Branch; on every loan file |
| Bridge loan | Short-term finance until a sale, refinance or lease-up. | A loan program |
| Closing costs | Fees paid at closing: title, appraisal, recording, lender fees. | Loan Info; defaults in Loan Guidelines |
| Construction loan | Finance for building, released in draws as work is completed. | A loan program plus Draw Management |
| Debt yield | Property income as a percentage of the loan. | Deal Analysis |
| Draw | A release of held-back rehab or construction money once the work is verified. | Draw Management; borrower portal |
| DSCR | Debt service coverage ratio — property income divided by debt service. Above 1.0, the property pays for itself. | Deal Analysis; minimum per program |
| Escrow | Money held by a third party until conditions are met; on a serviced loan, the account for taxes and insurance. | Contact Info; servicing |
| Exit strategy | How the loan gets repaid: sale, refinance or completing a business plan. | Loan Info |
| FICO | A credit score, 300–850. | Borrower Info; minimum per program |
| File status | Where a loan file is. Drives your pipeline, automation and reporting. | Every file's header; configured in Platform Settings |
| Fix and flip | Buy, renovate, sell. Short term, repaid from the sale. | A loan program, usually with a holdback and draws |
| Guarantor | Someone personally standing behind a loan made to a company. | Borrower Info; a signer type in e-sign |
| Holdback | The part of the loan not advanced at closing — usually the rehab budget — released later in draws. | Loan Info; Draw Management |
| Loan program | A product you offer. Decides the fields, required docs, workflow and guidelines on a file. | Set on the file; configured in Platform Settings |
| LTC | Loan to cost — the loan against purchase price plus rehab. | Deal Analysis; capped per program |
| LTV | Loan to value — the loan against the property's value now. | Deal Analysis; capped per program |
| Merge tag | A placeholder in a template, written between double hashes (##Like This##), replaced with loan data. | Doc Wizard and email templates |
| NOI | Net operating income — property income less operating expenses. | Property Info; Deal Analysis |
| Pari passu | Equal ranking: capital sources share gains and losses proportionally. | Capital allocation on a funded loan |
| Payoff | Settling the loan in full, quoted to a date. | Servicing |
| PITI | Principal, interest, taxes and insurance. | Servicing |
| Points | A fee charged as a percentage of the loan, usually at closing. | Loan Info; min and max per program |
| Pre-approval | A preliminary indication on limited information — not a commitment. | Generated from a template |
| Rate lock | A rate guaranteed for a set period. | Loan Info |
| Required doc | A document the file needs, listed from the loan program and deal details. Borrowers see it and upload to it. | The Docs tab; configured in Platform Settings |
| Seasoning | How long ago something happened (a bankruptcy, a purchase) and whether enough time has passed. | Borrower Info; minimums per program |
| Servicing | Everything after funding: payments, escrow, statements and payoffs. | Servicing; borrower portal |
| Sub-status | A tag adding detail within a file status. | The file header; configured with file statuses |
| Term sheet | The written offer: amount, rate, term, fees, conditions. | Generated from a template; sent for e-sign |
| Underwriting | Deciding whether to lend, on what terms and conditions. | Deal Analysis, Credit Memo, Credit Decision |
| Workflow step | One item on a file's ordered checklist of work. | The file's workflow; configured in Platform Settings |
The four ratios, side by side
On a deal with a $325,000 purchase, $85,000 rehab, $550,000 after-repair value and a $361,250 loan:
| Ratio | Calculation | Result |
|---|---|---|
| LTV | Initial advance ÷ value now | $276,250 ÷ $325,000 = 85.0% |
| LTC | Loan ÷ (purchase + rehab) | $361,250 ÷ $410,000 = 88.1% |
| ARV-LTV | Loan ÷ after-repair value | $361,250 ÷ $550,000 = 65.7% |
| DSCR | Property income ÷ debt service | Not applicable — a flip has no rental income |
Which one binds?Whichever hits your limit first. Here LTC at 88.1% is near a 90% cap while ARV-LTV at 65.7% is well inside 70%, so total cost is the constraint.
Acronyms
| LOC | Line of credit | SOW | Scope of work — the rehab or construction schedule |
| TPS | Third-party services — where vendor reports are ordered | URLA | Uniform residential loan application (the 1003) |
Full detail: in LendingWise, open Loan Origination → User Guide → Glossary.
Updated about 9 hours ago
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