| Conduit | The financial intermediary that sponsors the conduit between the lender(s) originating loans and the ultimate investor.> |
| Conventional Financing | A mortgage that is not insured or guaranteed by a government agency such as the Federal Home Administration (FHA) or Veterans Administration (VA). |
| Conventional Loan | A mortgage that is not insured or guaranteed by a government agency such as the Federal Home Administration (FHA) or Veterans Administration (VA). |
| Convertible | An option available on some adjustable rate mortgages (ARM's) that allows the loan to be converted to a fixed rate mortgage. |
| Cosigner | A person or entity who is willing to sign a loan obligation with you in case you default on your monthly payments. |
| Credit Company | A lending organization that obtains it source of funds from the commercial market. |
| Credit Enhancements | A loan to provide improvements to a property. |
| Credit Report | A report that contains information about your borrowing habits and money-managing skills. Lenders use it to determine whether to approve a loan and to set the terms. A person with a good credit report is likely to get a better interest rate than someone with a poor credit report. |
| Debt Service | The periodic payments (principal and interest) made on a loan. |
| Debt Service Coverage Ratio (DSC) | The ratio is calculated by taking the net operating income and dividing it by the mortgage payments. Most lenders look for a ratio of 1.25 or higher. |
