top of page

Glossary of Terms

Construction Financing

Typically, Construction Loans are short-term loans utilized by borrowers to finance building costs. Every construction loan varies depending on the product, the length of the construction process, and the borrower's experience. We can help builders find the best source, rate and term for these often critical loans. Generally, the land and improvements are held as collateral for the loan. Reserve accounts are maintained to disperse funds during construction.

Net Operating Income (NOI)

Property's actual income received minus the property's operating costs (minus mortgage payments) produce Net Operating Income or NOI.

Debt Service Coverage Ratio (DSCR)

This calculation is quite important when determining the maximum loan a property is eligable for. Every lender requires a property's NOI to be large enough to cover the property's debt service plus have some overage. It is common to see lenders require a DSCR of 1.20 meaning that the NOI must be 1.20 times the property's debt service.


Small and institutional investors may invest project equity with qualified developers and operators when there is significant opportunity for value appreciation and/or cash-flow enhancements.

Land Financing

These loans are designed for developers with attractive projects who either have no cash or do not want to put a lot of money into their deals. Land loans are typically made only to fully entitled or as otherwise known "shovel-ready" parcels of land. Finished lots, both residential and commercial, may also be qualified for today's land financing programs.



Whether it is structured as partnership debt or preferred equity, a Mezzanine Loan can be an integral component for a real estate owner or developer in many diverse circumstances. The Mezzanine typically equals the difference between the first mortgage lending amount and 85-90% of the purchase price. Essentially the program lends additional funding when first mortgages have reached their maximum loan amounts. We have vast experience in evaluating options for our borrowers in this increasingly utilized loan product for a variety of real estate transactions. These loans are subordinate to a primary lender.


Non-Bankable Financing

This program is for loan requests that are not acceptable by a typical bank, life insurance company or conduit lender. The issues may be credit, debt service (income issues) and/or collateral. For such financing, the project must be located in a strong market.


Rehab & Repositioning

Otherwise known as a Renovation Loan, this type of financing is similar to a Construction Loan and may involve financing to upgrade an existing property to project the desired image of a product or service to the market. Wincreek lending professionals are able to help borrowers present their renovation program to the ideal lending source and to plan and consummate transactions in a timely fashion, with the best rates and terms available.

Senior Debt

This is a typical mortgage or loan that is secured by the subject property or other collateral. Senior Debt, otherwise referred to as Debt, is the most popular form of lending as the lender is in a “senior” security position as to the underlying collateral. Consequently, Senior Debt tends to be the least expensive form of financing available.


Structured Finance

This involves an overall plan for a professional solution to your commercial financing needs. It may involve some or all of our financial products as well as the possibility of us structuring financial arrangements that involve other financial institutions and banks.



LTV stands for Loan to Value and it refers to the loan amount as a percentage of the property's fair market value.



LTC is the acronym for Loan to Cost and it typically refers to loans made for construction, renovation or rehab of a property. Loans are made as a percentage of the total cost of the project.

2nd Trust

A 2nd Trust is a lien instrument that is subordinated to a senior lien or 1st Trust. Such financing may be structured or referred to as Mezzanine and/or Equity depending on the terms of the note.


Loans are used to acquire and develop real property to an improved state. In many instances, voucher control is set up to disperse loan proceeds with only interest paid on the funds distributed.

Bridge Loans

There are many types of short-term financing products available for complex and challenging situations in terms of both urgency and product type. This type of financing is designed to be paid back relatively quickly, such as by a subsequent longer-term loan, bridge loans can be a key component in a long-term strategy for real estate borrowers. Wincreek offers a wide range of Bridge Loan programs and will educate borrowers about the nuances of these products to better plan for the future.

bottom of page