Realtors and even clients know about FHA, Conventional, or VA loans, however, there are some other loans not many people do and clients when asking local banks deny them.
The first one is called Family Opportunity Loan. Not many people know that you can buy a 2nd house with just 5% when buying it for parents or your child. There are specific requirements based on Fannie Mae guidelines you need to follow but not many people know about this type of loan.
The second type of loan is asset depletion for investors. Based on your assets you can get a loan. A borrower may utilize 70% of the balance in an investment account and divide by 240 months, according to the new regulation. As a result, this may be considered a qualifying monthly income. You'd be able to reduce $280,000 of the original $400,000 in savings under the new standards. You may now add $1167 per month to your qualifying income (dividing by 240 months).
The third type of loan is DSCR or DSR loan, which you can get based on your current cash flow. If your property is cash flowing you can get a loan based on that amount not based on your job, credit score etc.
The debt-service coverage ratio is used by businesses, governments, and individuals. The debt-service coverage ratio (DSCR) is a calculation of a company's cash flow available to pay current debts in the context of corporate finance. The DSCR is a metric used by investors to determine whether a firm has enough money to pay its bills.
Hope you like this short article! Expect more soon!
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