As the lending market has evolved, lenders have adopted various metrics to assess risk and determine loan provisions. This includes debt yield ratios which are used in combination with Loan-to-Value Ratios (LTV) and Debt Service Coverage Ratios (DSCR). Rather than relying on property values or amortization schedules alone when evaluating operations, this metric allows for …
Are you hoping to qualify for a mortgage and make the purchase of your dream home a reality? Then you’re probably aware that understanding the mortgage process can be daunting, to say the least! Knowing which steps are involved in obtaining a loan, what lenders look at when they evaluate applications, and how to ensure …
Understanding the Mortgage Process: A Step-by-Step Guide Read More »
Investing in short-term, vacation, and long-term rentals can be a relatively easy way to generate income and accumulate wealth. At The Mortgage Shop, we deeply understand this. We’ve helped thousands of investors jump-start their investment property cash flow and access that much-needed equity. Through our flexible, low-barrier loan products, we make financing simple. One option …
Your credit score is a critical metric used in assessing your creditworthiness and financial responsibility. It is key in determining whether or not you’re approved for a mortgage. A good credit score not only improves your chances of qualifying for a mortgage but also determines the interest rate you are offered and mortgage insurance. Here, …
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There are many types of loans available for homeowners, vacationers, and rental property investors. If you have investment properties that require financing, a Debt Service Coverage Ratio (DSCR) loan may be perfect for you. The DSCR loan is the right mortgage product for borrowers who want to avoid strict criteria, personal income verification, and time-consuming …
EVERYTHING You Must Know About DSCR Loan Requirements Read More »
Debt service coverage ratio (DSCR) loans are a type of no-ratio loan used by real estate investors to avoid the personal income benchmarks of conventional loans. Unlike conventional loans, DSCR loans are based on the expected cash flow and earning potential of investment properties. They are essentially investment property loans and are used on all …
How to Get a DSCR Loan for Airbnb Investment Properties Read More »
The debt service coverage ratio (DSCR) is a ratio that measures the rental income or cash flow of an investment property vs the annual payments toward debts. This ratio is a critical metric used by real estate investors borrowing a debt service coverage ratio mortgage. Based on the ratio, potential borrowers may be approved or …
What is DSCR in Real Estate? What It Means and Why It Matters Read More »
Unlike traditional loans, debt service coverage ratio (DSCR) loans are designed for borrowers who want to avoid the income verification standards, slower approvals, and underwriting complexities of conventional mortgages. The DSCR loan pros and cons vary depending on the borrower’s goals, financial situation, and property investment. Before You Apply for DSCR Loans If you’re considering …
DSCR Loan Pros and Cons vs Traditional Mortgages Read More »
One of the first important decisions you’ll need to make when buying or refinancing a property is whether you prefer a 15-year or 30-year mortgage. While both choices offer a set monthly amount over a lengthy period of time, there are more distinctions between the two than simply how long it would take you to …
A reverse mortgage is a unique type of home loan that allows investors and property owners who are at least 62 years old to turn significant property equity into cash they can spend. With a reverse mortgage, property owners essentially borrow against the property’s value. They do not have to make traditional monthly mortgage payments …
How to MAXIMIZE the Benefits of a Reverse Mortgage in 2023 Read More »
