Mortgage basics

Short definitions. For Florida insurance, limits, and homestead see the Florida mortgage guide.

DTI

Debt-to-income. Housing plus other debts divided by gross income. Florida insurance belongs in the housing side.

PITIA

Principal, interest, taxes, insurance, association dues. The denominator on a DSCR loan.

PMI

Private mortgage insurance on many conventional loans above 80% LTV. Not the same as FHA MIP or a VA funding fee.

COE

VA Certificate of Eligibility. Needed for a VA purchase or construction file.

IRRRL

VA Interest Rate Reduction Refinance Loan — a streamline refinance of an existing VA loan.

DSCR

Debt service coverage ratio: rent divided by PITIA. Business-purpose, non-owner-occupied.

Warrantable condo

A building that Fannie, Freddie, FHA, or VA will accept — master policy, litigation, investor concentration.

CDD

Community Development District assessment. Counts in housing expense even on the tax bill.

OTC

One-time close construction — one VA loan from dirt (or owned lot) through certificate of occupancy.