Frequently Asked Questions
Is there a maximum amount that I can borrow with an FHA loan?
There are limits on how much you can borrow based on your income and the median prices in your area. FHA loan limits have been increased for all counties in Washington. In response to rising home prices, the Department of Housing and Urban Development has raised the limits for 2022, with some counties seeing an increase of over $100,000. The new FHA limits range from $420,680 to a staggering $891,250Is there any downside to DSCR loans?
The biggest downside of DSCR loans is that they’re secured by the property’s income, so if the property doesn’t generate enough income, borrowers may find themselves unable to make their loan payments. Additionally, because lenders rely on the property’s income to repay the loan, they may be less willing to work with borrowers who have difficult financial situations. However, overall, DSCR loans can be a great option for those who qualify.Is there collateral required for a DSCR loan?
Collateral is not usually required for a DSCR loan, but it may be required depending on the lender and your business’s financials.Isn’t it true that all stated income loan applications are the same?
The terms stated income and no doc loan are often used interchangeably. However, this means that different loan application types have other requirements. As a result, it is essential that you thoroughly comprehend everything before choosing the best course of action for your situation.Do I need a perfect credit score to refinance?
No. High credit score will definitely give you an advantage in interest rate, however, having a lower credit score will not necessary disqualify you.What are closing costs?
Closing costs include fees for title insurance, escrow services and pre-paid interests, just to name a few. Once you open escrow, you will be presented with a list of estimated fees.What are closing costs for refinancing, and how much should I expect to pay?
Closing costs for refinancing typically range from 2% to 5% of the loan amount. These costs can include appraisal fees, title insurance, and attorney fees. We can help you understand the costs involved and discuss options for rolling them into your new loan. Curious about your specific costs? Let’s talk!