Residential Real Estate Loans
LESSON 6: DSCR Loans — When the Property’s Income Does the Qualifying
For many real estate investors, one of the biggest obstacles to obtaining financing isn’t the property. It requires documenting enough personal income to qualify for the loan. An investor may own several rental properties, have substantial equity, excellent credit and significant liquidity—and still encounter difficulty qualifying under traditional mortgage guidelines because of the way income…
Read MoreSan Francisco Condo Financing Is Changing — What Buyers, Sellers and Realtors Need to Know
Buying a condominium has always involved more than simply qualifying the borrower. The condo project itself also has to qualify. That distinction is becoming increasingly important as a combination of new Fannie Mae and Freddie Mac lending guidelines, California HOA laws, balcony and exterior elevated element inspection requirements, and San Francisco-specific building regulations changes the…
Read MoreMISSION IMPOSSIBLE LOANS – EPISODE 10
The Condo in San Francisco, the Family in Nepal, and the Loan That Almost Didn’t Happen Most people think getting financing should be easy when: You have excellent credit You own a condominium free and clear You have rental income You have significant equity In theory, they’re right. In reality, lenders don’t finance theories. They…
Read MoreA Major Appraisal Change Is Coming November 2 — What Homebuyers, Sellers and Realtors Need to Know
Most homebuyers and sellers don’t spend much time thinking about the appraisal process. Until the appraisal becomes a problem. Beginning November 2, 2026, one of the largest changes to residential appraisal reporting in more than 15 years becomes mandatory for appraisals submitted to Fannie Mae and Freddie Mac. It’s called UAD 3.6, and it will…
Read More“Buy Land, They’re Not Making It Anymore”
Why Financing Land and Land Development Requires a Different Lending Strategy There is a famous line widely attributed to Mark Twain: “Buy land, they’re not making it anymore.” Whether Twain actually said it or not, the observation captures something fundamental about real estate: land is finite. But owning land and successfully developing land are two…
Read MoreLesson 5: Bank Statement Loans — When Tax Returns Don’t Tell the Whole Story
For many self-employed borrowers, there can be a significant difference between taxable income and the actual cash flow generated by their business. That isn’t necessarily a problem with the business. It may simply be the result of how the tax code works. Business owners often legitimately reduce taxable income through ordinary business expenses, depreciation and…
Read MoreLesson 4: Residential Lending Playbook : Beyond Conforming
Government Lending — FHA, VA and USDA Explained Government-backed mortgage programs are among the most misunderstood options in residential lending. Some borrowers assume FHA is only for first-time homebuyers. Some eligible Veterans never seriously consider VA financing because they have heard that VA loans are difficult, sellers don’t like them, or the property won’t qualify.…
Read MoreIs Your San Francisco Condo Still Warrantable? Why Yesterday’s Approved Condo May Not Be Today’s Approved Condo
“But someone in the building just got a conventional loan last year.” I’ve heard variations of that statement many times when financing a condominium. A unit owner refinanced. A neighbor purchased a condo with 20% down. Fannie Mae or Freddie Mac financing was apparently available. So when the next unit comes on the market, everyone…
Read MoreBuying a Fixer Condo? Don’t Let the HOA Become the Real Fixer.
Sometimes the Lowest Price Isn’t the Biggest Opportunity…or the Biggest Risk. Recently, a first-time homebuyer contacted me about a condominium that immediately caught their attention. The listing price was attractive, the monthly HOA dues were only $270, and although the property needed cosmetic updating, the buyer was handy and eager to build sweat equity. On…
Read MoreLESSON 3: NOT ALL LENDERS ARE CREATED EQUAL
Why Good Borrowers Get Declined — And Why Another Lender May Say Yes Have you ever wondered why one lender declines a borrower while another lender approves the exact same transaction? It happens more often than many homebuyers and real estate professionals realize. A borrower may have excellent credit, substantial income, significant assets and a…
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