supported by Notion AI A Real Estate Investment Trust or REIT is a company that owns, operates, or finances income-generating real estate. REITs pool money from multiple investors to purchase and manage different types of properties, such as office buildings,...
Owner occupied financing refers to when a borrower for a property purchase will be staying and occupying said property. This is a preferred lending option for most lenders and financial institutions, because with the borrower living there they are more likely to...
Loan-to-Value and Combined Loan-to-Value ratios are used to evaluate the total amount of a property that is encumbered by liens and debt obligations. Understanding how providing a loan to a borrower relates to the value of the property or asset the loan is for shows...
When applying for a home loan, the lender is going to do some underwriting to see how much the borrowing can pay and borrow. One important metric is the Debt-to-Income Ratio (DTI). This metric depicts how much debt you have versus the income you make. You can...
When acquiring property there are many financing options beside your traditional mortgage. One unique financing option is the subject to mortgage. This approach has benefits for the buyer, yet you need to ensure it’s the best option for you. A subject mortgage...
Assumption of a Mortgage is a unique approach to acquiring property, considered assumption property buying. What happens in this type of transaction, the buyer takes liability, and thus the payments for an existing mortgage. When the seller has a property that...
Owner Financing is a unique transaction where the seller of a property finances the purchase directly with the person or entity buying it. This can be for the entire purchase price or a portion of it. One benefit for this arrangement is that it eliminates the bank...
Owning property provides you with equity, making it such a great investment. In the case of a home purchase with financing you are building equity over time, through both the property value increase and paying down your loan. With the equity you can secure low cost...
FHA loan stands for Federal Housing Administration, but many mistake it for First Home Application home. The reason is because this type of loan is usually used by first home buyers. This loan is a great choice for people with poor credit or without the...