37 terms defined. Search by keyword, program type, or browse alphabetically.
37 of 37 terms
A Non-QM program that uses 1099 forms (typically 1 or 2 years) to qualify independent contractors and freelancers. No tax returns required.
A mortgage with an interest rate that adjusts periodically after an initial fixed-rate period. BFF offers 5/6, 7/6, and 10/6 ARM options across Non-QM programs.
A CFPB regulation under the Dodd-Frank Act requiring lenders to make reasonable, good-faith determinations that borrowers can repay their mortgage loans. Non-QM loans meet ATR but not QM safe harbor.
Short-term rental analytics platform used to determine rental income potential for DSCR loan qualification on properties listed or intended for platforms like Airbnb and VRBO.
An income qualification method that uses a borrower's liquid assets divided by a set number of months to derive qualifying income. No employment or traditional income documentation required.
Buy, Rehab, Rent, Refinance, Repeat — an investment strategy where investors purchase a property, improve it, rent it out, refinance to pull out equity, and repeat the process with DSCR financing.
A Non-QM loan program that uses 12 or 24 months of personal or business bank statement deposits to qualify borrower income instead of tax returns or W-2s.
A mortgage for investment or commercial purposes, not owner-occupied. These loans are exempt from certain consumer lending regulations including TRID and ATR/QM rules.
California Financing Law License — a state license required for certain types of lending activity in California. Different from a CRE or DRE license.
A letter from a Certified Public Accountant certifying a self-employed borrower's income. Used as supporting documentation in Non-QM programs like P&L and 1099 loans.
The ratio of a property's net operating income (NOI) to its current market value. Used in real estate investment analysis and DSCR underwriting to assess property value.
A refinance transaction where the new loan amount exceeds the payoff of the existing mortgage, allowing the borrower to receive the difference in cash. Available across QM and Non-QM programs.
A blanket portfolio loan that allows borrowers to pledge multiple investment properties as collateral under a single loan. Enables higher leverage and streamlined portfolio management.
Programs that provide funds toward a borrower's down payment or closing costs. BFF offers its own DPA program providing up to 100% financing on eligible properties.
The ratio of a property's rental income to its mortgage payment (PITIA). A DSCR of 1.0 means rental income covers the full payment. BFF offers programs down to 0.75 DSCR.
The percentage of a borrower's gross monthly income that goes toward paying monthly debt obligations. QM loans cap DTI at 43%, while Non-QM programs offer more flexibility.
A government-insured mortgage program with lower down payment requirements (3.5%) and more flexible credit guidelines. BFF offers FHA with no overlays and FICO down to 500.
A Non-QM loan program designed for non-US citizens who want to purchase or refinance investment property in the United States. Does not require SSN, ITIN, or US credit history.
A Non-QM loan that uses traditional full documentation (tax returns, W-2s) but falls outside QM guidelines due to factors like property type, loan amount, or recent credit events.
Short-term, asset-based lending typically used for fix-and-flip or bridge financing. Unlike hard money, BFF's DSCR programs offer 30-year fixed terms with competitive rates.
A VA streamline refinance that allows eligible veterans to refinance to a lower interest rate with minimal documentation and no appraisal requirement.
A mortgage program for borrowers who have an Individual Taxpayer Identification Number instead of a Social Security Number. Available for primary residences through BFF.
A mortgage that exceeds the conforming loan limits set by the FHFA. BFF offers jumbo financing up to $5M across multiple programs.
The ratio of the mortgage amount to the appraised value of the property. Lower LTV generally means better pricing and easier qualification.
The centralized registration system for mortgage loan originators, companies, and branches. BFF's NMLS# is 243082.
A property's total income minus operating expenses (excluding mortgage payments). Used in DSCR calculations and commercial property valuations.
A mortgage that does not meet the Consumer Financial Protection Bureau's definition of a Qualified Mortgage. Non-QM loans offer alternative documentation and qualification methods for borrowers who don't fit traditional lending boxes.
A Non-QM program that qualifies borrowers using a CPA-prepared profit and loss statement instead of tax returns. Ideal for self-employed borrowers with complex tax situations.
Principal, Interest, Taxes, Insurance, and Association dues — the complete monthly housing payment used in DSCR and DTI calculations.
A fee charged to borrowers who pay off their mortgage before a specified period. Common in Non-QM and DSCR loans, typically structured as 3-2-1 or 5-4-3-2-1.
A mortgage that meets the CFPB's ATR requirements and provides the lender with legal safe harbor protection. QM loans have restrictions on fees, terms, and borrower DTI.
An agreement that guarantees a specific interest rate for a set period while a loan is in process. BFF's rate lock policies are detailed in the Broker Resource Center.
A property rented for periods of less than 30 days, typically through platforms like Airbnb or VRBO. DSCR programs can use projected STR income via AirDNA analysis.
TILA-RESPA Integrated Disclosure — federal regulations governing mortgage disclosure requirements. Business purpose loans are exempt from TRID.
A government-backed mortgage program offering 100% financing for eligible rural and suburban properties. BFF offers USDA loans with no overlays.
A mortgage guaranteed by the Department of Veterans Affairs for eligible service members, veterans, and surviving spouses. Features include no down payment and no PMI.
A document from an employer verifying a borrower's employment status, title, income, and length of employment. Used as alternative documentation in some Non-QM programs.
