Frequently Asked Questions

There are a few different ways to improve your DSCR, including increasing your revenue, lower your expenses, or finding a more efficient way to use your working capital. You can also try refinancing existing debts to get better terms or extend the repayment period.

Determining whether it is the right time to refinance involves evaluating how a new loan would improve your overall financial position compared to your existing mortgage. With LBC Mortgage, refinancing decisions are based on a combination of market conditions and personal objectives rather than interest rates alone. A common trigger is when current interest rates are meaningfully lower than your existing rate, which may reduce monthly payments or long-term interest costs. However, rate changes are only one part of the equation.

Credit profile improvements can also make refinancing attractive. If your credit score has increased since you obtained your original loan, you may qualify for better pricing or more flexible loan programs. Equity growth is another key factor. As your property value increases or your loan balance decreases, refinancing options such as removing mortgage insurance or accessing cash through a cash-out refinance may become available.

Loan structure and future plans also matter. Borrowers sometimes refinance to switch from an adjustable-rate mortgage to a fixed-rate loan for payment stability, extend the loan term to improve monthly cash flow, or shorten the term to accelerate equity buildup. The length of time you plan to keep the property is important as well, since refinancing costs should be weighed against the expected savings over that period. By reviewing current loan terms, market conditions, and long-term goals together, refinancing becomes a strategic decision rather than a reactive one.

In order to qualify for a Conventional Loan, you will need to have a strong credit score and a down payment of at least 3%. You will also need to show proof of income and employment history.
To qualify for a DSCR loan, you’ll need to have good credit and enough income to cover the loan payments. The lender will also look at the property’s performance history to make sure it has been generating enough income to cover the costs of operating and maintaining the property.
In order to qualify for a DSCR mortgage, you will need to have at least a 620 credit score and income to make the monthly payments. In addition, the property you are looking to purchase must be an income-producing property, such as a rental property or a commercial building.
To qualify for a jumbo loan, you’ll need a good credit score and a healthy debt-to-income ratio. You’ll also need to prove that you have the financial resources to make a large down payment and cover the monthly payments.
Lenders typically offset the lack of closing costs by charging a higher interest rate on the loan. This means that over time, you’ll end up paying more in interest with a no closing cost mortgage than you would with a traditional mortgage.
A DSCR loan works by using the property’s DSCR to determine the loan amount. The property’s DSCR is calculated by dividing the property’s net operating income by its debt service. The higher the DSCR, the higher the loan amount.
Borrowers with liquid assets can use those assets to qualify for a loan. The asset amount is added to the borrower’s income to determine loan eligibility. For example, if a borrower has $100,000 in liquid assets and earns $50,000 per year, the borrower can qualify for a loan as if they earn $150,000 per year.
The DSCR loan program is administered by the Small Business Administration (SBA). Businesses that meet the eligibility criteria can apply for loans of up to $5 million. The SBA guarantees a portion of the loan, which helps to reduce the risk for lenders and makes it easier for businesses to secure financing.
Once you decide to plan a home buying journey apply to get pre-approved. If you have some issues with the financial report, you will have time to improve the situation.
The process of getting approved for a jumbo loan can take several weeks. Borrowers should expect to provide documentation of their income, employment history, and assets. Lenders will also need to order a property appraisal. The entire process can take several weeks, so borrowers should plan accordingly.