Frequently Asked Questions

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)
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).
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.
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.