DSCR Investor Loans
Ideal for real estate investors, one of the main benefits of a DSCR loan is that a personal income calculation is not required. The lender is instead focused on the cash flow that the real estate investment at hand (or intent to acquire) is predicted to generate. This erases the need to turn in those paystubs while also erasing the need for employment verification. Along with these benefits, an investor can come to the closing table and close each loan in their entity’s business name which further allows you to separate personal information from business operations.
All in all, DSCR Loans are an extremely valuable product that allows you to separate your business from your personal affairs, does not dig quite as deep into personal records, can offer a quicker closing time than other loan products, and requires a lower down payment than other real estate investment ventures. While no loan is seen as flawless, this option is extremely attractive as a real estate investor.
FHA Home Loan
A Federal Housing Administration (FHA) loan is a home mortgage that is insured by the government and issued by a bank or other lender that is approved by the agency. FHA loans require a lower minimum down payment than many conventional loans, and applicants may have lower credit scores than is usually required. FHA loans are designed to help low- to moderate-income families attain homeownership. They are particularly popular with first-time homebuyers.
An FHA loan might be the right choice for you if you have decent credit and don’t have a large down payment saved. The fact that you can get an FHA mortgage with just 3.5 percent down puts homeownership within grasp for many people, but that doesn’t mean FHA loans are the best option for everyone.
Bank Statement Loan
A bank statement loan is a mortgage for which the underwriter uses the borrower’s bank statements to verify and evaluate income. Good candidates for bank statement loans include small business owners and self-employed individuals.
Bank statement loans are a type of mortgage that lenders can issue based on personal information and bank statements rather than tax returns and employer verification. They can be a good option if you work for yourself, own a business, or don’t have a steady income. A bank statement loan may come with a higher interest rate and need a larger down payment.
A conventional mortgage loan is one that’s not guaranteed or insured by the federal government. Most conventional mortgage loans, aka conventional mortgages, are “conforming,” which simply means that they meet the requirements to be sold to Fannie Mae or Freddie Mac. Fannie Mae and Freddie Mac are government-sponsored enterprises that purchase mortgages from lenders and sell them to investors. This frees up lenders’ funds so they can get more qualified buyers into homes.
Conventional loans generally offer lower costs than other loan types, and if you meet credit score requirements and have a down payment of at least 3%, a conventional mortgage might be the best solution for you. We can help you decide if this is the best fit for your situation, give me a call or text at 469-400-9493 if you have any questions.