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 …
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 …
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 …
FHA loans and conventional mortgages are common mortgages used to finance homes. Whereas Federal Housing Administration (FHA) mortgage loans are insured by the government, conventional loans come solely from private lenders such as credit unions, banks, and mortgage brokerages. FHA loans have lower qualifying standards and lower down payment criteria than conventional loans. Conventional mortgages, …
Your Guide to Comparing FHA vs Conventional Loan Mortgages Read More »
Fixed-rate and variable-rate mortgages are two types of mortgage loans that homeowners use to finance their homes over years. The basic difference between variable rates vs fixed rates is the interest rate. Fixed-rate mortgages have a fixed interest rate that does not fluctuate, no matter the market conditions. Meanwhile, variable-rate mortgages have variable interest rates …
The Difference Between a Fixed-Rate and Variable-Rate Mortgage Read More »
In the world of mortgages, there are two major categories: jumbo loans vs. conventional loans. While conventional loans conform with the loan limit and conditions set by the Federal Housing Finance Agency or Fannie Mae and Freddie Mac, jumbo mortgages do not. Jumbo mortgages make up only a tiny percentage of all mortgages in the …
When looking for a way to finance or refinance your home, it’s essential to answer the mortgage broker vs. lender question. While both mortgage brokers and lenders can help you get the financing you need to buy a home, there are differences in their duties and the way they operate. Understanding the differences can help …
There are many questions about second home vs. investment property mortgage rates, but we’re here to answer them. Mortgage rates for rental properties or second homes are higher than primary residences. However, there is less risk in buying a second home as opposed to an investment property. But that doesn’t mean there aren’t costs you …
Mortgage Rates for Second Home vs. Investment Property Read More »
Owning a house has several advantages, one of which is the chance to build equity in the home. The equity in your house is the sum of your mortgage debt and the property’s fair market value. You can access this equity in a number of ways, including by obtaining a second mortgage. But what distinguishes …
Second Mortgage vs Home Equity Loan: Pros & Cons Read More »
Loan qualifications are by and large one of the most un-fun procedures we encounter during the home buying process. Endless lists of documents and requirements are enough to keep anybody up late at night, let alone those who don’t hold traditional employment. Entrepreneurs and self-employed professionals are no strangers to the nightmare of income verification …
Bank Statement Loans: Pros & Cons Every Entrepreneur Should Know About Read More »
