What Is a Cash-Out Refinance?
A cash-out refinance replaces an existing mortgage or investment property loan with a new loan for a larger amount. The difference between the new loan balance and the amount needed to pay off the existing loan is provided to the borrower as cash, subject to the lender’s requirements and closing costs. For example, if an […]
What Is Multi-Family Funding?
Multi-family funding refers to financing used to purchase, refinance, renovate, or develop properties containing multiple residential units. Depending on the property size and loan program, financing may be available for: The appropriate financing option depends on factors such as the number of units, property value, rental income, borrower qualifications, and investment strategy. How Does Multi-Family […]
What Is Ground-Up Construction Financing?
Ground-up construction financing is a type of real estate financing used to fund the development of a new property from an undeveloped or cleared site. Depending on the lender and loan structure, financing may cover eligible costs such as: Construction loans are typically short-term and may distribute funds in stages, or draws, as construction milestones […]
What Is BRRRR Financing?
BRRRR financing refers to the funding used throughout the five stages of the BRRRR real estate investment strategy: The strategy is generally focused on properties where renovations can increase the property’s value and rental income. Because different stages have different financing needs, investors may use more than one type of loan during the process. How […]
What Are DSCR Rental Loans?
DSCR stands for Debt Service Coverage Ratio. A DSCR rental loan is an investment property loan that primarily considers the property’s cash flow when evaluating whether the borrower can support the debt. Instead of relying exclusively on the borrower’s personal salary or employment income, the lender generally looks at the rental property’s income compared with […]
What Are Fix and Flip Bridge Loans?
Fix and flip bridge loans are short-term financing options used to purchase and improve residential or investment properties with the goal of selling them for a profit. Unlike conventional mortgages, bridge loans are generally structured around the property’s investment potential and the borrower’s overall project. Depending on the lender and loan program, financing may cover […]
Does Mortgage Prequalification Hurt Credit Scores?
Does mortgage prequalification hurt credit? Learn how soft pulls, hard inquiries, and DSCR loan underwriting affect an investor’s next move and score safely.