Chapter 7 & 8 Flashcards
Credit Loan
loan for well-known corporation /signature alone/ pledging only it’s leasehold interest
corporate
legal owner of the cooperative/issue stock for the purchaser..
MMI
Mutual Mortgage Insurance/ monthly insurance premium paid with monthly principal ,interest tax and insurance
Hard Money loan
2th mortgage given to private company/ /in exchange for Cash/ needed to deal with personal finance crisis.
AMT
Alternative Minimum TAX/ Law to insure that UPPER INCOME tax payer paid at least some income tax .
Assessment liens
properties that are benefited from the capital project, lien imposed
Contingent interest
The shared of appreciated value in SAM ( Shared Appreciated Mortgage)
S Corporation
TAX OPTION Corporation / corporation income in taxable directly to the shareholders rather than to the corporation
MIP
Upfront insurance premium
Periodic Cap
A limit to the amount of the rate can change at any one time
Two step mortgage
ARM loan program /interest rate in adjusted only one time/ new rate is in effect for the remainder of the loan term.
Depreciation Allowance
An Amount the investor can deduct from income tax to recover INVESTMENT CAPITAL
Realized Gain or Loss
difference between the consideration received and adjusted tax basis at the time the transaction take place .
Margin
lenders cost of doing business/ mark-up
Funding Fee
percentage of the loan amount to be charged for obtaining VA loan
