5.0 on Google Glossary · Investor loans

Investor loan terms, in plain words.

The words on a term sheet for a flip, a build or a rental — ARV, LTC, LTV, DSCR, points, draws, seasoning — each with what it means and what it does to your loan.

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ARV · LTC · LTV DSCR · PITIA Points · draws
Glossary · jump to As of November 2026
ARVafter-repair value
LTCloan ÷ total cost
LTVloan ÷ value
DSCRrent ÷ full payment
Points1% of the loan each
Drawsrehab money in stages
Every term links to the loan it belongs to.
01Glossary

Every term on an investor’s term sheet.

Each one, what it means and where it matters.

ARV — after-repair value
What the property will be worth once the renovation is done, set by the appraisal. Fix & flip loans cap the loan at a share of it: up to 75% here. On a $500,000 ARV, a loan of up to $375,000.
Where it matters →
LTC — loan-to-cost
The loan divided by the total project cost: purchase plus renovation. Silver goes up to 92.5% of cost.
Where it matters →
LTV — loan-to-value
The loan divided by the property’s value. Rental loans are sized on it: up to 85% on a DSCR purchase, 80% on a cash-out.
Where it matters →
LTC vs LTV
Cost against value. A renovation loan is held to both a cost ceiling (LTC) and a value ceiling (ARV); a rental loan is sized on value (LTV). The lowest ceiling is the loan.
Where it matters →
DSCR — debt-service-coverage ratio
The monthly rent divided by the full monthly payment: principal, interest, taxes, insurance and HOA. At 1.00 the rent covers the payment exactly. It is rounded down, never up.
Where it matters →
PITIA
Principal, interest, taxes, insurance and association dues: the full monthly payment DSCR is measured against.
Where it matters →
Points (origination)
A fee of 1% of the loan per point, paid at closing. Silver carries 1.25 points: on a $300,000 loan, $3,750.
Where it matters →
Draws
The renovation or construction money is held at closing and released in stages as the work is done and inspected. We run draws in-house and fund approved draws in minutes.
Where it matters →
Financed interest (no monthly payments)
The interest during the renovation is built into the loan, so nothing comes out of pocket each month while you work.
Where it matters →
Prepayment penalty
A fee for paying a rental loan off early, usually a percentage that steps down each year (5-4-3-2-1). We offer 5-1-1-1-1, a flat 1% (1-1-1-1-1) or none.
Where it matters →
Seasoning
How long you have owned a property. It affects how much cash-out a refinance allows and on what value. Many lenders make you wait months before a cash-out; we have no waiting period.
Where it matters →
Cash-out refinance
A new loan larger than the one it pays off, handing you the difference.
Where it matters →
Rate-and-term refinance
A refinance that changes the rate or the structure without taking cash out.
Where it matters →
Business-purpose loan
A loan for an investment property the borrower will not live in. All of our loans are business-purpose.
Where it matters →
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*For business-purpose loans on non-owner-occupied investment property only. Not available for personal, family or household purposes. All loans subject to credit approval, underwriting and property eligibility. Rates, leverage and terms are indicative, change without notice, and not all borrowers will qualify; not a commitment to lend. YS Capital Group · NMLS ID 2609746 · Equal Housing Lender.