Frequently Asked Questions

A DSCR mortgage is a type of loan that is typically used by investors to finance the purchase of income-producing properties. The loan is structured so that the borrower’s monthly mortgage payments are equal to or greater than the property’s net operating income (NOI).
A DSCR (Debt Service Coverage Ratio) mortgage program is a type of loan that is specifically designed for real estate investors looking to purchase rental properties. It is based on the property’s rental income and expenses, rather than the borrower’s personal income and credit score.
A good DSCR varies depending on the industry, but generally speaking, a DSCR of 1.5 or higher is considered healthy. This means that for every $1 of debt, there is $1.50 of cash flow available to repay the loan.
A good DSCR ratio falls between 1.25 and 2.5. This range indicates that a property is generating enough income to cover its mortgage payments and other associated costs, while still providing a reasonable cushion in the event of an unexpected expense. A lower ratio may indicate that a property is at risk of defaulting on its mortgage, while a higher ratio may indicate that a property is not generating enough income to justify its purchase price. However, it is important to remember that the DSCR ratio is just one factor to consider when evaluating a property.
A jumbo loan is a mortgage that exceeds the conforming loan limits set by the Federal Housing Finance Agency. In most of the country, the maximum loan amount that can be purchased with a conforming loan is $647,200. However, in some areas of the country, including parts of California, the limit is as high as $970,800.
When refinancing your mortgage, there are a lot of different fees and costs to consider. Some of these, like the loan origination fee, are typically rolled into the loan itself. Others, like appraisal fees or title insurance, are paid upfront. And then there are closing costs, which can add several thousand dollars to the total cost of your refinance. A no closing cost refinance is a loan that helps cover these costs at signing, so you don’t have to come up with the cash upfront.
An appraisal is an evaluation of property obtained from an independent certified professional. It is needed to help the lender to determine market value of the property you are purchasing, since the property will be used as collateral against the mortgage.
An Asset Depletion Loan is a type of mortgage that allows borrowers to use their liquid assets, such as savings or investments, to qualify for a loan. Asset Depletion Loans can be used to purchase a primary residence, second home, or investment property.
An FHA loan is a mortgage that is insured by the Federal Housing Administration. Because of this insurance, lenders are able to offer lower down payment requirements and more flexible underwriting guidelines.
ITIN stands for Individual Taxpayer Identification Number. It’s a unique number that the IRS assigns to people who don’t have a Social Security number. ITIN loans are special loans available to people with an ITIN number.

Refinancing means replacing your current mortgage with a new one, often to secure a lower interest rate, reduce monthly payments, or access cash for home improvements. It can help you save money over time or better align your mortgage with your financial goals. Want to see if refinancing is right for you? Contact us today!

A good debt service coverage ratio is 1.25 in general. Anything higher is an ideal DSCR. Lenders want to see that you can pay off your debts while also earning enough money to cover any cash flow fluctuations.