Frequently Asked Questions

he documents needed to refinance a mortgage can vary significantly based on your financial profile and the type of refinance you are pursuing. When working with LBC Mortgage, the documentation process is aligned to the specific loan program rather than applying a single checklist to every borrower. The goal is to verify income stability, assets, credit, and property details in a way that reflects how you actually earn and manage money.

For borrowers with traditional W-2 income, refinancing typically requires recent pay stubs, W-2 forms from the prior two years, and a verification of employment. Self-employed borrowers may instead provide two years of personal and business tax returns, or alternative documentation such as 12 or 24 months of personal or business bank statements if using a bank statement refinance program. Real estate investors refinancing rental properties under DSCR guidelines may not need personal income documentation at all, as qualification is based on the property’s rental income relative to its monthly expenses.

In addition to income documentation, most refinances require recent bank statements to verify assets for closing costs and reserves, a copy of the current mortgage statement, homeowners insurance information, and identification. Credit is pulled as part of the review, and an appraisal may be required depending on the loan type and equity position. By matching documentation requirements to the appropriate refinance program, the process becomes more efficient and avoids unnecessary paperwork while maintaining responsible underwriting standards.

FHA stands for Federal Housing Administration. An FHA loan is a type of government-backed mortgage insured by the FHA, which is a division of the U.S. Department of Housing and Urban Development (HUD). FHA loans are available for purchases and refinance and have low down payment requirements and fixed interest rates.
An FHA loan is a home loan that is insured by the Federal Housing Administration. This type of loan is often used by first-time home buyers or people with less-than-perfect credit. Because the FHA provides insurance on the loan, lenders are more willing to approve borrowers who might not otherwise qualify.
DSCR stands for Debt Service Coverage Ratio. In order to qualify for an Idaho DSCR loan, you’ll need to have a Debt Service Coverage Ratio of 1.25 or higher. That means your net operating income must be 1.25 times your total debt service (including principle, interest, taxes, and insurance).

If your application is denied, don’t worry—it’s not the end of the road. We’ll give you feedback on why it happened and guide you on what to do next to improve your chances for approval later. We believe in second chances and are here to help. Ready to explore your options? Contact us!

Yes, you can refinance again even if you just did it recently, but it’s important to assess whether it makes financial sense. Consider factors like current rates, your financial goals, and the closing costs involved. Ready to evaluate your refinancing options? Contact us for more info!

A bad debt service coverage ratio is the one that is below 1.0. This means that the borrower may have difficulty making their payments. However, each situation is unique and a low DSCR does not mean a borrower can’t take the loan, since lenders will consider many factors when assessing a loan application.
A cash-out refinance is a new loan that replaces your current mortgage and gives you additional cash to use however you want.
A Conventional Loan is a mortgage that is not backed by the government, such as an FHA or VA loan. They are typically available with either a fixed or adjustable interest rate and have lower credit score requirements than government-backed loans.
A DSCR loan down payment may vary depending on the lender. Though in most cases, the down payment is as low as 20-25%
DSCR loans are often used for large commercial real estate projects, such as office buildings or shopping centers. The loans can beA DSCR, or debt service coverage ratio, is a key metric used in the commercial loan market. The ratio measures a company’s ability to make debt payments by comparing earnings before interest, taxes, depreciation and amortization (EBITDA) to total debt payments. A ratio of 1.0 means that a company has exactly enough earnings to cover its debt payments. A higher ratio indicates that a company has more than enough earnings to cover its debt payments, while a lower ratio suggests that a company may be struggling to make its payments. Lenders use the DSCR to assess a company’s creditworthiness and risk profile. A low DSCR could lead to higher borrowing costs or even rejection of a loan application. Used to finance the purchase, development, or construction of the property.
A DSCR loan is a type of business loan that is typically used for working capital or to finance business expansion. The loan is repaid using the cash flow of the business, and the lender looks at the business’s Debt Service Coverage Ratio (DSCR) to determine whether or not the loan is affordable.