Found 2 blog entries tagged as LENDING.

HELOC LOANS ON THE GULF COAST


A HELOC (Home Equity Line of Credit) loan is a type of loan that allows homeowners to borrow against the equity in their home. Equity is the difference between your home’s current market value and the amount you owe on your mortgage. With a HELOC, you’re essentially using the value you’ve built up in your home as collateral to access a revolving line of credit, much like a credit card.

Key Features of a HELOC:

  1. Credit Limit: The amount you can borrow is typically based on a percentage of your home’s appraised value minus what you owe on your mortgage. For example, if your home is valued at $300,000 and you owe $150,000, the lender may allow you to borrow up to 85% of your home’s value (which would be…

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Understanding DSCR Loans on the Gulf Coast

GULF COAST LIVING

As a real estate advisor licensed in Alabama and Florida, I often work with investors seeking opportunities along the Gulf Coast. Whether you’re exploring condos in Gulf Shores or vacation homes in Orange Beach, understanding financing options is key. One increasingly popular option for real estate investors is the Debt-Service Coverage Ratio (DSCR) loan.

What is a DSCR Loan?

A DSCR loan is a type of financing tailored for real estate investors. Unlike traditional loans that heavily rely on personal income and employment verification, DSCR loans evaluate the property's income potential. The focus is on whether the rental income can cover the property’s debt obligations, such as mortgage payments,…

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