The language of the loan request.

A multifamily loan made under Fannie Mae or Freddie Mac programs, originated by approved lenders and sold to or guaranteed by the agency.

Paying down a loan's principal over time through scheduled payments that combine interest and principal.

A short-term commercial real estate loan that finances a property through a transition until it qualifies for permanent financing or is sold.

The layers of debt and equity that fund a commercial real estate deal, ranked by who gets paid first.

A property's net operating income divided by its value; the market's way of pricing a stream of income.

A commercial mortgage pooled with other loans into a trust and sold to bond investors as commercial mortgage-backed securities.

A loan that funds the building of a new project or a major redevelopment, advanced in draws as work is completed.

The total principal and interest a borrower pays on a loan over a period, usually measured per year in commercial real estate.

How many times a property's net operating income covers its annual loan payments.

Net operating income as a percentage of the loan amount: the return a lender would earn if it took the property back on day one.

A loan period during which the borrower pays only interest, with no principal reduction.

The set of criteria a lender will actually fund: loan size, asset classes, markets, leverage, coverage, sponsor requirements and loan types.

The set of documents and summaries a broker sends to lenders to request financing on a commercial real estate deal.

Working out the maximum loan a lender will make by applying its LTV, DSCR and debt yield limits and taking the smallest result.

The loan amount as a percentage of the project's total cost, used mainly for construction and heavy value-add loans.

The loan amount as a percentage of the property's appraised value or purchase price.

Subordinate financing secured by a pledge of the ownership interests in the borrower, sitting between the senior loan and equity.

A property's income after operating expenses, before debt service, capital expenditures, depreciation and income taxes.

A marketing document describing a property or financing request, sent to buyers or lenders to start the conversation.

A long-term, typically amortizing loan on a stabilized commercial property, sized on its current income.

An equity investment with priority over common equity for distributions and return of capital, but behind all debt.

A fee or cost a borrower pays to repay a commercial loan before a set date, compensating the lender for lost interest.

A projection of a property's future income, expenses and cash flow, based on assumptions about rents, occupancy and costs.

A lender's right to pursue the borrower's or guarantor's other assets, beyond the property, if a loan defaults and the collateral falls short.

A unit-by-unit or tenant-by-tenant list of a property's leases, rents and occupancy as of a specific date.

An SBA program that finances owner-occupied commercial real estate through a bank first loan and a Certified Development Company second loan.

A benchmark interest rate based on overnight loans backed by U.S. Treasury securities; the main index for floating-rate U.S. loans.

The person or firm behind a commercial real estate deal who controls the borrower, executes the business plan and often guarantees the loan.

A property's operating statement for the most recent twelve months, showing income and expenses month by month.

A lender's written outline of the loan it's prepared to offer, listing the main terms before formal underwriting and closing.