After a hurricane, the process of closing on a mortgage may be impacted due to potential damage to the property or delays caused by the storm's aftermath. Here are the next steps to take:1. Assess Property DamageInspect the Property: The first step is to assess if the property sustained any damage during the hurricane. This can be done by the buyer, seller, or a licensed inspector. Some lenders may require a re-inspection before closing.Appraisal Updates: If there is significant damage, the lender may need a new appraisal to determine the property's current value.2. Review Insurance RequirementsHomeowners Insurance: Make sure the homeowners insurance policy is active and covers the damage caused by the hurricane. Lenders require insurance to protect their investment.Flood Insurance: If the property is in a flood-prone area, lenders may require flood insurance before closing. Confirm that this coverage is in place.3. Communicate with the LenderDiscuss the Situation: Contact the lender to discuss any necessary extensions or changes to the loan terms due to the hurricane. Some lenders may offer flexibility in the closing process.Updated Paperwork: Additional documentation or updates may be required if the closing date changes.4. Repair or Re-NegotiateRepair the Damage: If there is damage, determine who will cover the cost. The seller may need to make repairs, or the buyer and seller can negotiate a new agreement.Re-Negotiate the Purchase Agreement: If repairs cannot be made before closing, the buyer may ask for concessions, such as a price reduction or repair credits.5. Schedule a Final Walk-ThroughVerify Repairs: If any repairs were made, schedule a final walk-through to ensure everything is in order before closing.Confirm the Property's Condition: Make sure the property is still in the condition agreed upon in the contract.6. Reschedule the ClosingNew Closing Date: Coordinate with all parties to set a new closing date if the original was delayed.Complete Closing Paperwork: Sign all documents and finalize the loan as per the new schedule.Staying in close contact with your lender, real estate agent, and insurance company throughout this process is essential for a smooth closing after a hurricane.Tune in and learn at https://www.ddamortgage.com/blogdidier malagies nmls#212566dda mortgage nmls#324329 Support the show

The Federal Reserve influences interest rates in the economy, but its actions may not always align with the actual rates individuals or businesses experience in the market. Even if the Fed cuts its benchmark interest rates, other factors can cause rates, such as mortgage rates or bond yields, to rise. Here are some key reasons why rates might go up despite Fed rate cuts:1. Inflation Concerns:If inflation expectations are rising, lenders demand higher interest rates to compensate for the loss of purchasing power. Even with a Fed cut, inflationary pressures may push long-term rates up as investors seek higher returns to protect against inflation.2. Economic Outlook:Markets may interpret a Fed rate cut as a signal of economic weakness. If investors are concerned about future growth or financial stability, they may sell bonds or other interest-rate-sensitive assets, causing yields (interest rates) to rise.3. Bond Market Dynamics:The Federal Reserve primarily controls short-term interest rates, but long-term rates (e.g., mortgage rates) are influenced by the bond market. If investors sell bonds due to concerns like inflation, higher deficits, or geopolitical risks, bond prices fall and yields (long-term rates) rise.4. Supply and Demand for Credit:If the demand for borrowing increases, banks may raise interest rates to balance supply and demand. Conversely, if banks perceive increased risk in lending (for example, during uncertain economic times), they might increase the rates they charge to mitigate potential losses.5. Global Factors:International economic conditions, such as rising global interest rates or capital outflows from the U.S. to other countries, can push up domestic interest rates. For example, if rates rise in other countries, U.S. rates might rise to remain competitive and attract investment.6. Federal Reserve Policy Expectations:If markets believe that the Fed’s rate cut is temporary or that future inflationary pressures will force the Fed to raise rates again soon, long-term rates might increase in anticipation of those future rate hikes.While the Fed can reduce its benchmark rate, the overall interest rate environment is influenced by broader economic factors, market expectations, and global dynamics.Download the latest iOS or Android app to try advanced voice modeGet more natural, real-time conversations with advanced voice. Senses and responds to humor, sarcasm, interruptions, and more.tune in and learn at https://www.ddamortgage.com/blogdidier malagies nmls#212566dda mortgage nmls#324329 Support the show

Purchasing flood insurance, even if you're not in a designated flood zone, can be a wise decision for several reasons:1. Floods Can Happen AnywhereFloods are not confined to high-risk zones. In fact, more than 20% of flood insurance claims come from properties outside of high-risk flood zones. Severe storms, hurricanes, or even rapid snowmelt can lead to flooding in areas considered low or moderate risk.2. Climate Change and UnpredictabilityClimate change is making weather patterns more unpredictable. Areas previously unaffected by floods may become vulnerable due to changing rainfall patterns or rising sea levels. This increased uncertainty makes flood insurance a useful safeguard.3. Relatively Low Cost in Low-Risk AreasFlood insurance is usually less expensive for homes outside high-risk flood zones, so purchasing a policy can provide significant protection at a reasonable cost. Compared to high-risk zones, where premiums can be higher, the cost-to-benefit ratio is often better in low-risk areas.4. Homeowner’s Insurance Doesn't Cover FloodsStandard homeowner’s insurance policies do not cover flood damage. Without separate flood insurance, homeowners must bear the full cost of any flood-related damage, which can be substantial.5. Federal Disaster Assistance Is LimitedMany people assume that in the event of a disaster, federal assistance will cover their losses. However, federal disaster aid is often in the form of low-interest loans, not grants, and must be repaid. Flood insurance offers more comprehensive coverage and quicker financial relief.6. Increasing Property ValueSome homebuyers may prefer a property with existing flood insurance, even if it's in a low-risk zone. This could make your home more attractive if you decide to sell.Purchasing flood insurance, even if you're not in a designated flood zone, provides financial protection and peace of mind, especially in the face of increasingly unpredictable weather patterns.tune in and learn at https://www.ddamortgage.com/blogdidier malagies nmls#212566dda mortgage nmls#324329 Support the show

When the Federal Reserve (Fed) cuts interest rates, it is usually intended to stimulate economic activity. Here's what typically happens when the Fed lowers its benchmark interest rate:1. Lower Borrowing CostsFor Consumers: Lower rates make borrowing cheaper for consumers, particularly for loans such as mortgages, car loans, and credit cards. This often leads to increased spending and investment by consumers, which can boost economic growth.For Businesses: Companies can borrow at lower rates to invest in new projects, hire more workers, and expand operations. Lower borrowing costs can encourage business growth and investment.2. Increased Consumer SpendingLower interest rates reduce the cost of borrowing, encouraging consumers to finance purchases, especially of big-ticket items like homes and cars. This increased demand for goods and services can help boost the economy.3. Encouraging InvestmentsStock Market: Lower interest rates can make stocks more attractive compared to bonds or savings, as the yield on safer assets decreases. This can push stock prices higher, as investors seek higher returns from equities.Business Investment: Lower borrowing costs can prompt businesses to expand by purchasing new equipment, hiring more employees, or pursuing new ventures, which in turn stimulates economic activity.4. Weaker CurrencyLower interest rates can weaken the U.S. dollar in international markets because investors may seek higher returns in other currencies. A weaker dollar makes U.S. exports more competitive abroad, which can help boost domestic manufacturing and the economy.5. Stimulates InflationWhen borrowing becomes cheaper, demand for goods and services can increase, leading to higher prices. The Fed typically lowers rates when inflation is low or economic growth is sluggish. If demand rises faster than supply, inflation may increase, which is one goal if the economy is too slow.6. Lower Savings ReturnsSavings accounts, certificates of deposit (CDs), and other fixed-income investments typically yield lower returns when rates are cut. This can push savers to spend more or invest in higher-risk assets like stocks to achieve better returns.7. Boost the Housing MarketLower interest rates make mortgages cheaper, potentially driving up home sales and home prices as more people can afford to buy homes.8. Employment GrowthLower borrowing costs for businesses may lead to more hiring, as companies can finance expansions or projects at a cheaper rate. This can reduce unemployment rates and increase overall wages over time.9. Risk of OverheatingIf the Fed cuts rates too aggressively, it could lead to excessive borrowing and spending, which might cause inflation to rise too quickly, creating the risk of an overheated economy.Why the Fed Cuts RatesThe Fed typically lowers interest rates during periods of economic slowdown, recession, or low inflation to encourage economic activity. Conversely, it raises rates when inflation becomes a concern or when the economy is growing too quickly.In summary, a Fed rate cut is meant to stimulate the economy by making borrowing cheaper, encouraging consumer and business spending, and promoting investment. However, it can also carry risks, such as inflation and asset bubbles.tune in and learn at https://www.ddamortgage.com/blogdidier malagies nmls#212566dda mortgage nmls#324329 Support the show

Following the 10-year treasury yield, it has gone from 4.9 down to 3.64, the market is ahead of the Fed in anticipating a rate cut this month, so the drop in rates has already been baked in. When the Fed drops it will be a .25 or a .5 and the market will react to that drop in a positive or possibly a negative way.Is it time to refinance your home? That is a great question, are you going to consolidate debt, cash out, or do a rate-term refinance. It is really a phone call to see where you are at and what makes sense for your financial planning. No one is going to sell you anything, really just look at the numbers and see if it makes sense.  We are heading down and nice to see some relief for a home purchase as well, a drop in rates of 1% makes a difference and we have dropped that already and I believe the probability of more to come.Keep watching the 10 yr and see if we go lowertune in and learn at https://www.ddamortgage.com/blogdidier malagies nmls#212566dda mortgage nmls#324329 Support the show

An FHA (Federal Housing Administration) mortgage is a popular home loan option, especially for first-time homebuyers or those with limited down payment funds or less-than-perfect credit. Below are the pros and cons of an FHA mortgage:Pros of an FHA Mortgage:Lower Down Payment:FHA loans typically require as little as a 3.5% down payment, making homeownership more accessible for buyers who may not have substantial savings.Flexible Credit Requirements:Borrowers with credit scores as low as 500–580 (depending on the lender and loan terms) can still qualify for an FHA loan. This is more lenient compared to conventional loans, which often require higher credit scores.Higher Debt-to-Income (DTI) Ratios:FHA loans allow for higher DTI ratios (up to 43%-50%) compared to conventional loans, which makes it easier for borrowers with higher levels of debt to qualify.Available to First-Time and Repeat Buyers:FHA loans are available to both first-time homebuyers and those who have owned homes before, as long as they meet the qualifications.Assumable Loan:FHA loans are assumable, meaning that if you sell your home, the buyer can take over your mortgage, which can be a selling point if interest rates rise in the future.Refinancing Options:FHA offers Streamline Refinancing, which allows current FHA borrowers to refinance to a lower rate with reduced paperwork and without requiring a new appraisal.Cons of an FHA Mortgage:Mortgage Insurance Premiums (MIP):FHA loans require both an upfront mortgage insurance premium (1.75% of the loan amount) and ongoing annual mortgage insurance premiums (0.45%-1.05% of the loan balance). This can add significantly to the cost of the loan over time.The MIP is required for the life of the loan if your down payment is less than 10%.Loan Limits:FHA loans have maximum loan limits that vary by region and property type. In high-cost areas, this limit might not be enough to buy a more expensive home.Stricter Property Standards:The home must meet FHA's minimum property standards, which may require repairs or upgrades before the loan can be approved. This can be an issue with older homes or fixer-uppers.Potentially Higher Interest Rates:While FHA loans are designed to help buyers with lower credit scores, borrowers with good credit may find lower interest rates and better terms with a conventional loan.Not Ideal for Large Loan Amounts:If you need a loan amount that exceeds the FHA loan limits in your area, you might be forced to look for alternative loan options like a conventional or jumbo loan.Longer Closing Times:FHA loans can sometimes take longer to close compared to conventional loans due to stricter underwriting and property inspection requirements.An FHA mortgage can be a great option for those with limited savings or credit challenges, but it's important to weigh the long-term costs, particularly the mortgage insurance premiums, before deciding.tune in and learn at https://www.ddamortgage.com/blogdidier malagies nmls#212566dda mortgage nmls#324329 Support the show

First-time Homebuyers are able to purchase a home with a 2/1 Buydown at the wholesale lender's expense. If you purchase a home and the interest rate is say 6.375%, the 2/1 buydown allows you to pay 4.375% for the first year, then 5.375% the second year, and then 6.375% for the remainder of the loanNormally the seller would pay the interest difference for year 1 and year 2, now the Wholesale lender will pay that expense so it is not a negotiating feature for you on the purchase of the home. It is paid for by your lender and does not have to go to the seller. Elevated rates these past 2 years help to get the lower rate for a couple of years and with the probability of refinancing in that period of timeAlways bringing you products that can benefit you on your home purchase adventuretune in and learn at https://www.ddamortgage.com/blogdidier malagies nmls#212566dda mortgage nmls#324329 Support the show

I have Helocs on primary, secondary, and now Investment properties.How exciting to tap into the equity on your investment property without having to refinance the first if you have that nice low interest rate.If you have a low interest rate, do the Heloc and see if the blended rate is lower than refinancing the first. The time will come when you can refinance both of them when the rates really do come down in the future.Thought it was pretty exciting to now have this product available to youLet me know if I can help out and another way to get some cash from your hometune in and learn at https://www.ddamortgage.com/blogDidier Malagies nmls212566DDA Mortgage nmls324329 Support the show

We know when the interest rates drop the following will happen1. refinancing to a lower rate2. consolidating debt into one lower payment3. First-time home buyers will be coming out to buy4. There will be downsizing of homes with the lower rates5. There will be upsizing on homes with the lower rates18 to 29-year-olds still living at home will be buying. With all that great news that also means there will be a lot more printing of money which will cause everything to go up in price, Things will be more expensive with Trillions more being printed Time will tell and but a flurry of activity will take place when the interest rates do really drop down to the levels of 2020tune in and learn at https://www.ddamortgage.com/blogDidier Malagies nmls#212566DDA Mortgage nmls#324329 Support the show

The Government is printing 1 trillion every 100 days, we are over 35 trillion in debt today, and we are spending 1/3 of the debt is interest payments of total revenue coming in, next year it will have 1/2.so I feel the probability of rates coming down is great at some point down the road.You can see the 10-year has come down from 5% to 3.81%, which is significant and the market is telling you that something isn't rightWe have over 1.2 trillion in credit card debt, the time will come when refinancing will make sense, and downsizing or upsizing will make sense as wellI think when this happens the refinances will be incredible and also more homes will be on the market with active buyers. Definitely will be a game-changerRefinancing and purchases are great now with the opportunity to refinance them down the road. I think prices will escalate again when this happenstune in and learn at https://www.ddamortgage.com/blogdidier malagies nmls#212566dda mortgage nmls#324329 Support the show

Whether to get flood insurance outside of a designated flood zone depends on various factors, including your location, property value, risk tolerance, and financial situation. Here are some points to consider:Flood Risk Outside of Flood Zones: Even if you're not in a high-risk flood zone, flooding can still occur due to factors like heavy rainfall, clogged storm drains, or infrastructure failures. FEMA reports that over 20% of flood insurance claims come from properties outside of high-risk areas.Cost of Insurance: Flood insurance is generally less expensive for properties outside of high-risk flood zones. Weighing the cost of the policy against the potential financial impact of flood damage is crucial.Home Value and Investment: Consider the value of your home and personal belongings. If a flood could result in significant financial loss, insurance might be a prudent investment.Climate and Weather Patterns: Changing weather patterns and increased frequency of extreme weather events can lead to unexpected flooding, even in areas not historically prone to it.Peace of Mind: Flood insurance can provide peace of mind, knowing you're protected against a potentially devastating event.In summary, while it's not mandatory outside high-risk zones, getting flood insurance can be a wise precautionary measure depending on your circumstances. It’s advisable to consult with an insurance agent who can provide more specific information based on your location and property.tune in and learn at https://www.ddamortgage.com/blogDidier Malagies nmls#212566DDA mortgage nmls#324329 Support the show

Paying off your mortgage earlier can save you money on interest and give you financial freedom sooner. Here are some strategies to help you achieve this goal:1. Make Extra PaymentsBiweekly Payments: Instead of making one monthly payment, make half of your mortgage payment every two weeks. This results in 26 half-payments or 13 full payments each year, effectively making an extra payment annually.Extra Monthly Payments: Add extra money to your monthly mortgage payment. Even a small amount can significantly reduce the loan term and interest paid.Lump-Sum Payments: Apply any windfalls, such as tax refunds, bonuses, or inheritance, directly to your mortgage principal.2. Refinance to a Shorter TermRefinancing your mortgage to a shorter term, such as 15 years instead of 30, can save you on interest and help you pay off your mortgage faster. However, this typically means higher monthly payments, so ensure it fits within your budget.3. Round Up Your PaymentsRound up your mortgage payments to the nearest hundred dollars. For instance, if your monthly payment is $965, round it up to $1000. The extra amount will go towards the principal.4. Apply Raises and BonusesWhenever you receive a raise or bonus, consider allocating a portion or all of it towards your mortgage. This can accelerate your payoff without affecting your current budget.5. Reduce Other DebtsPay off high-interest debts first (like credit cards). This will free up more money to put towards your mortgage.6. Cut Unnecessary ExpensesReview your budget for areas where you can cut back. Redirect the savings towards your mortgage payments.7. Use a Mortgage CalculatorUse online mortgage calculators to see the impact of extra payments. This can help you plan and stay motivated by showing how much time and money you can save.8. Stay ConsistentCommit to making extra payments regularly. Consistency is key to reducing your mortgage term significantly.Important Considerations:Check Your Loan Terms: Ensure there are no prepayment penalties or restrictions on making extra payments.Emergency Fund: Maintain an emergency fund before making significant extra payments to avoid financial strain.Consult a Financial Advisor: It’s wise to discuss your plans with a financial advisor to ensure you’re making the best decisions for your financial situation.By employing these strategies, you can pay off your mortgage earlier and achieve financial freedom sooner.tune in and learn at https://www.ddamortgage.com/blogdidier malagies nmls#212566dda mortgage nmls#324329 Support the show

Why is it that when you pull your credit scores it is usually not the same as when you have one pulled for a mortgage?Credit Karma is a great source but the scores are usually not spot on the value is that when you make payments or make changes the scores will change and a great tool to monitor the scores. Also, when you look at Discover or what you have with your bank again not the same as when pulling for a mortgage. The great news is that you have an idea of where your scores are and can work with that moving forward. tune in and learn at https://www.ddamortgage.com/blogdidier malagies nmls#212566dda mortgage nmls#324329 Support the show

The concepts of real estate portability and homestead are key aspects of property tax laws in some jurisdictions, notably in states like Florida. Here's an overview of each:Real Estate PortabilityReal estate portability, particularly in the context of Florida, refers to the ability of homeowners to transfer some or all of their accrued property tax benefits from one home to another within the state. This concept is part of Florida's Save Our Homes (SOH) benefit.Key Points:Save Our Homes Cap: Limits the annual increase in the assessed value of homestead property to 3% or the rate of inflation, whichever is lower.Portability: Allows homeowners to transfer the SOH benefit to a new homestead property, potentially reducing the new property's assessed value and, consequently, the property tax.Eligibility: To be eligible, the homeowner must establish a new homestead within three years of abandoning the previous homestead.Homestead ExemptionA homestead exemption is a legal provision that helps shield a portion of a home's value from property taxes. This can lead to significant property tax savings for homeowners.Key Points:Exemption Amount: In Florida, the standard homestead exemption allows homeowners to exempt up to $50,000 of their home's assessed value from property taxes. The first $25,000 applies to all property taxes, and the second $25,000 applies to non-school taxes.Primary Residence: The property must be the primary residence of the homeowner to qualify.Additional Benefits: Certain individuals, such as seniors, veterans, or individuals with disabilities, may be eligible for additional exemptions.Interaction Between Portability and Homestead ExemptionWhen a homeowner sells their current homestead and purchases a new one, they can transfer their Save Our Homes benefit to the new property. This process involves calculating the differential between the market value and the assessed value of the old homestead and applying a similar benefit to the new homestead's assessed value.Example ScenarioCurrent Home: A homeowner's current home has a market value of $300,000 and an assessed value of $200,000 due to the Save Our Homes cap.New Home: The homeowner purchases a new home for $400,000.Portability: The homeowner can transfer the $100,000 SOH benefit (the difference between market and assessed value) to the new home, reducing its assessed value to $300,000 ($400,000 - $100,000).Application ProcessTo apply for portability and the homestead exemption:File Homestead Exemption: File a homestead exemption application with the local property appraiser's office.File Portability Application: File a separate portability application to transfer the SOH benefit.ConclusionUnderstanding the rules and benefits of real estate portability and the homestead exemption can lead to significant property tax savings. It's important to check with local property appraiser offices for specific requirements and deadlines.tune in and learn at https://www.ddamortgage.com/blogdidier malagies nmls#212566dda mortgage nmls#324329 Support the show

I like to see what is available for you by getting your age and the approximate value of your home. Once we have that and go over what you may have available, we encourage you to get take the Gov't class which costs about $190. You have a 3rd party that goes over all the details of a Reverse Mortgage making sure you understand everything and it makes sense.When that is complete, I will meet with you at your home and go through all the documentation that is required to be signed I also ask that you have a family member there as well, and if no one is close by then a phone call to be with us during our time together. I find it best that your family is involved so that they know all about the Reverse Mortgage as well and also to take the class with you online that you are required to take. I gather all of your documents and scan them for the lender, it may require several visits on my part but I am here to help. We also have to get an FHA appraisal on the home which we have to order and you must pay for. While the loan is being processed the title work is ordered and insurance is being taken care of. Once we have our clear to close we schedule the closing which can be at the title or your home. Always like your family to be there or on the phone as well. I look forward to helping you or just answering any questions you may have on the Reverse Mortgage. tune in and learn at https://www.ddamortgage.com/blogdidier malagies nmls#212566dda mortgage nmls#324329 Support the show

After closing on a mortgage, many new homeowners notice a significant increase in the amount of unsolicited mail, often referred to as "junk mail." Here's why this happens and what you can expect:Why You Receive More Junk MailPublic Records: When you close on a mortgage, the transaction becomes a matter of public record. Companies that sell products and services related to homeownership often purchase these public records to target new homeowners.Credit Inquiries: Mortgage lenders typically make a hard inquiry on your credit report when you apply for a mortgage. Credit reporting agencies may sell information about these inquiries to marketers.Service Providers: Various service providers (such as insurance companies, home security firms, and maintenance services) use information from public records and credit inquiries to market their products to new homeowners.Types of Junk Mail You Might ReceiveMortgage Protection Insurance: Offers for insurance to cover your mortgage payments in case of death, disability, or job loss.Homeowner's Insurance: Solicitations from insurance companies offering to insure your new home.Home Improvement Services: Flyers and brochures from contractors, landscapers, and other home improvement service providers.Security Systems: Offers for home security systems and monitoring services.Financial Services: Credit card offers, refinancing options, and other financial products targeting new homeowners.Address Change Services: Notifications and advertisements from companies offering services related to your change of address.Managing Junk MailOpt-Out Services: You can use services like the Direct Marketing Association's Mail Preference Service (DMAchoice) to reduce unsolicited mail.Credit Reporting Agencies: Opt out of pre-approved credit offers through the official website OptOutPrescreen.com or by calling 1-888-5-OPT-OUT.Public Records: Some counties and states offer ways to opt-out or restrict the sharing of your public records for marketing purposes. Check with your local county clerk's office for options.Return to Sender: Mark unwanted mail "Return to Sender" and send it back. This might not always be effective, but it can sometimes help reduce future mail from the same sender.Shredding: Be sure to shred any junk mail that contains personal information to protect yourself from identity theft.While it can be frustrating to receive a lot of junk mail after closing on a mortgage, taking these steps can help reduce the volume and manage the influx of unsolicited offers.tune in and learn at https://www.ddamortgage.com/blogDidier Malagies nmls#212566DDA  Mortgage nmls#324329 Support the show

How long has it been since you have lived in your home? what did you pay for it back then and what is the value today after all of the home appreciation?Maybe it is time to call your insurance agent and ensure you have replacement coverage.Our home has been our wealth over the years and I think it is important to make sure you are well covered.tune in and learn at https://www.ddamortgage.com/blogdidier malagies nmls#212566dda mortgage nmls#324329 Support the show

VA Mortgages have no monthly PMI, they have a funding fee that goes on top of the loan and it varies from a first-time VA buyer to a second-time user if there is a certain percentage of disability then no funding fee.With an FHA Mortgage, there is an upfront funding fee of 1.75% and a .55 factor for monthly PMI. Now for Conventional Mortgages, there is no upfront funding fee only a monthly PMI and that depends on your credit scores and down payment on your home.With an excellent credit score, the monthly PMI factor can be at .1 and upIt is good to know because your interest rate is predicated on your credit score and also the PMI can be a factor as well on Conventional loans.tune in and learn at https://www.ddamortgage.com/blogdidier malagies nmls#212566dda mortgage nmls#324329 Support the show

For Conventional loans, limits are now at $766,550 before entering Jumbo territory. You can buy a home for $806,842 putting 5% down and still be Conventional. Now for FHA the loan limit is $498,257.  you can buy a home for $516,328 putting 3.5% down nowA VA mortgage can go up to $2,000,000 with no money down. 100% financing up to $2,000,000With the cost of everything going up, it is nice to see the Government increasing the loan limits to accommodate the higher pricestune in and learn at https://www.ddamortgage.com/blogdidier malagies nmls#212566dda mortgage nmls#324329 Support the show

A residential DSCR (Debt Service Coverage Ratio) loan is a type of mortgage typically used for investment properties, where the approval and terms of the loan are based on the property’s income rather than the borrower’s personal income. The DSCR is a measure of a property's ability to generate enough income to cover its debt obligations. Here's a more detailed explanation:Key Points of a Residential DSCR Loan:Debt Service Coverage Ratio (DSCR):The DSCR is calculated by dividing the property's net operating income (NOI) by its total debt service (e.g., mortgage payments, property taxes, insurance).A DSCR of 1 means the property generates just enough income to cover its debt payments. A DSCR greater than 1 means the property generates more income than needed for debt payments, indicating a safer investment for lenders. A DSCR below 1 suggests the property does not generate enough income to cover its debt, posing a higher risk to lenders.Property Income-Based Qualification:Unlike traditional mortgages that rely heavily on the borrower's personal income, credit score, and employment history, DSCR loans focus on the income produced by the investment property itself.Lenders assess the property's ability to generate rental income that can cover the mortgage payments and other associated costs.Suitable for Investors:These loans are particularly attractive to real estate investors who might own multiple properties and have complex personal financial situations.They enable investors to expand their portfolios by leveraging the income generated from existing properties to secure additional financing.Loan Terms and Conditions:Interest rates and terms can vary depending on the lender, the property's DSCR, and the overall risk assessment.Typically, properties with higher DSCRs might qualify for better loan terms and lower interest rates, reflecting the lower risk.Documentation:Lenders usually require detailed financial statements of the property, including rental income, operating expenses, and maintenance costs.They may also require appraisals and market rent analysis to validate the property's income potential.Benefits of a DSCR Loan:Flexibility: Investors can secure financing based on the property’s performance rather than personal financial strength.Scalability: Easier for investors to expand their real estate portfolios.Streamlined Process: Potentially less cumbersome in terms of personal financial documentation required.Potential Drawbacks:Higher Interest Rates: Since the focus is on the property’s income, the perceived risk might lead to slightly higher interest rates compared to conventional loans.Property Dependency: The viability of the loan is heavily dependent on the property's income performance, making thorough due diligence crucial.In summary, residential DSCR loans are a specialized financing option designed for real estate investors, allowing them to leverage the income generated by their investment properties to obtain new loans. This type of loan can be particularly beneficial for expanding a real estate portfolio without being constrained by personal income limitations.tune in and learn at https://www.ddamortgage.com/blogdidier malagies nmls#212566dda mortgage nmls#324329 Support the show