HER and OER (Housing Expense Ratio and Overall Expense Ratio) are ratios used by mortgage lenders to evaluate whether a borrower can reasonably afford a proposed mortgage loan. The Housing Expense Ratio (HER) compares the borrower’s expected monthly housing expenses...
Mezzanine debt sounds a bit fancy, but it really is a less secure form of debt. Mezzanine debt is a form of financing that sits between senior mortgage debt and the property owner’s equity in the capital structure of a real estate investment. It is generally used when...
If you think an A-paper loan sounds like a good bet, you’re right. An A-paper loan, also called an A-credit loan or prime loan, is a mortgage made to a borrower who meets a lender’s highest or near-highest credit standards. A-paper borrowers generally have...
Who are you supposed to be as an agent in a real estate transaction? This question is more difficult to answer than it may seem. As an agent, you’re supposed to be your client’s BFF while also being their taskmaster; you’re supposed to be loyal to them, except when...
Scratch and dent loans sound like financing that’s been through a lot, but they’re actually less terrifying than they sound. Scratch and dent loans are mortgage loans that have defects or irregularities that make them difficult to sell through normal...
