A type of multiple ownership in which the residents of a multiunit housing complex own shares in the cooperative corporation that owns the property, giving each resident the right to occupy a specific apartment or unit. It is one of the indexes commonly used to set the rate of adjustable rate mortgages . Covenant A written restriction on the use of land, most commonly in use today in homeowners associations . Credit report A report on a person's credit history prepared by a credit bureau and used by a lender in determining a loan applicant's record for paying debts in a timely manner. The percentage of a person's monthly earnings used to pay off all debt obligations.
Lenders consider two ratios, constructed in slightly different ways.
In the back-end ratio, a borrower's other debts, such as auto loans and credit cards, are also figured in. Some lenders, and some lending qualifying agencies such as FHA , take only the back-end ratio into account. The legal document conveying title to a property. The amount of a property's purchase price that the buyer pays in cash and does not finance with a mortgage. A deposit made by potential home buyers during negotiations with the seller.