Top 12 Real Estate Acronyms You Should Know

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Real estate has a language all its own. From mortgage terms to market analysis, these acronyms come up in nearly every transaction. Whether you're buying your first home, investing, or just trying to understand the process, here's your go-to glossary:

FICO – Fair Isaac Corporation

Your credit score. Ranges from 300–850, and plays a major role in loan approval and interest rates.
APR – Annual Percentage Rate

The true cost of borrowing. APR includes your interest rate plus lender fees, giving you a better apples-to-apples comparison between loan offers.
PMI – Private Mortgage Insurance

Required if you put down less than 20%. Protects the lender if you default, and adds to your monthly cost.
HOA – Homeowners Association

Governs certain communities (condos, townhomes, etc.). Monthly fees cover shared amenities and maintenance—and come with community rules.
PITI – Principal, Interest, Taxes, Insurance

Your full monthly mortgage payment. This number matters more than just your base loan payment—it’s what lenders use to assess affordability.
Freddie Mac – Federal Home Loan Mortgage Corporation (FHLMC)

A government-sponsored entity that buys mortgages from lenders to keep funds flowing in the market.
Fannie Mae – Federal National Mortgage Association (FNMA)

Similar to Freddie Mac, Fannie Mae supports the housing market by buying and guaranteeing mortgages from lenders.
EMD – Earnest Money Deposit

A good-faith deposit (typically 1–3%) made with your offer. It shows you’re serious and is applied to your down payment at closing.
CMA – Comparative Market Analysis

Used to estimate a home’s value based on recently sold properties nearby. Critical when setting list prices or making offers.
LTV – Loan-to-Value Ratio

Loan amount ÷ home value. A key number for lenders—lower LTV usually means better rates and less risk.
MLS – Multiple Listing Service

The agent-only database where homes are listed and shared. It powers sites like Zillow, Redfin, and Realtor.com.
DSCR – Debt Service Coverage Ratio

Used for investment property loans. It measures a property's income vs. its debt. A DSCR of 1.25+ is often required.