Hi, this is Tom Heath with a Mortgage Guidance Group at Nova Home Loans, and this is our weekly installment of mortgage and real estate related matters. And this week’s topic is investment homes. There certainly has been an increase in rates that we’re all aware of, and it’s affected second homes and investment properties significantly. NOVA has rolled out an in house program that allows us to look at the market rents of investment properties and qualify the borrower based upon market rents if it exceeds the mortgage payment, including taxes, insurance and HOA costs. If that happens, it’s called a Debt Service Coverage Ratio (DSCR Program).
We’ve had this for a while, but it’s been a broker product, meaning we’ve had to rely on other underwriters. It’s now something we can do in house, and it offers a little bit of an advantage to your investor clients if they’re having trouble verifying their income through tax returns or if they’re trying to purchase some investment properties without as much income verification.
Doesn’t work for everyone, and there’s always there are trade offs in the cost of that loan versus a conventional conforming loan. So we always advise, if you’ve got anyone in that particular area looking at investment properties, just have them give us a call. We can walk through what their various options are.
If you have any topics you’d like us to cover, don’t hesitate to let us know that you can contact us through email, give us a call, or head over to our website, MGGroupTucson.com. There’s a Contact us button and a lot of our past videos are there as well. Thanks so much. Bye.