Frequently Asked Questions

In order to be eligible for the Investor Cash Flow Program, you must be a U.S. citizen or legal resident and have a minimum credit score of 680. You must also have verifiable income and assets, as well as clean credit history. In addition, you must be able to provide a down payment of at least 20% of the purchase price of the property.
If you’re considering an FHA loan, pay attention that borrowers have to pay two insurance premiums which adds to the total sum of expenses. The UFMIP is worth 1.75% of the loan amount, while the MIP ranges between 0.45% to 1.05% of your loan amount. Nevertheless, while both premiums are required, you may be able to get a discount on the MIP if you have a good credit score or if you make a large down payment.
Interest rates on jumbo loans are usually slightly higher than for conforming loans. However, since each lender sets its own rates, it’s important to compare offers from multiple lenders to get the best rate possible.
Interest rates on ITIN loans may vary depending on the lender and the amount of loan you’re applying for.
Jumbo loans are not centrally regulated, which means that each lender can set its loan limits. Some lenders offer jumbo loans up to $2.5 million, while others allow loan amounts up to $3 million.
If you’re in the market for a jumbo mortgage, now is a great time to lock in a good rate. The jumbo 30-year fixed mortgage rate is 7.20%, while the 15-year rate is 6.49%. So, it’s important to keep in mind that rates could start to rise soon, and you should act asap not to miss an opportunity.
Repayment terms will vary depending on the lender, but they typically range from 1 to 5 years.
The requirements for a DSCR loan vary depending on the lender, but generally speaking, you will need to have a strong financial history and good credit in order to qualify for a loan.
As with any loan, there are risks involved with taking out a cash-out refinance. Before taking out a new loan, understand the terms and conditions and if you can afford the monthly payments. Also, keep in mind that by taking equity out of your home, you’re increasing your loan amount and may end up paying more in interest over time.
As with any loan, there is always some risk involved. However, because DSCR loans are repaid with business cash flow, they tend to be less risky than other types of business loans.

Eventually, if you are unable to take a loan because your DSCR is too low, you have just two alternatives. You’ll have to either put the idea on hold, wait out any existing leases, raise the rent for the next year, or accept a smaller loan amount.

Waiting and raising rent prices may make sense in the right conditions, especially if rent in the region has risen significantly and you’re confident that you’ll be able to lease the properties without risking a lengthy vacancy. However, accepting a smaller loan amount would be the easiest way forward for the most part.

Lenders check for the following information when analyzing your bank statements to evaluate whether they can approve you for a loan:
  • The account balance is positive.
  • Overdrafts are rare.
  • Deposits of monthly earnings
  • Enough funds to cover at least a 20% down payment (10 percent down requires a 660 minimum credit score)
  • Enough funds to cover several months’ mortgage payments as well as closing costs
  • When your income was deposited into your account (usually, they want the money to be seasoned, which means it wasn’t all deposited right before you applied for your loan)