What’s the main thing?

[Ashanti Douglas]

What's the main thing that matters for getting approved for funding / loans / dscr financing? 

[Arman Ahmed]

Quote from @Ashanti Douglas:

What's the main thing that matters for getting approved for funding / loans / dscr financing? 

It depends on the loan type, but the main thing is usually whether the lender believes the deal and the borrower both make sense. For conventional loans, that often means income, debt-to-income ratio, credit, and reserves. For DSCR loans, the property’s cash flow relative to the payment is usually the star of the show, plus credit score, down payment, and reserves. A lot of investors overlook that the easiest approval often comes from choosing a property that naturally pencils well, which is one reason many out-of-state buyers look at Midwest markets, where rents can support financing more comfortably than higher-priced markets. The borrower matters, but the asset matters too.