
<br>

## What is a mortgagee clause?

<br>

A mortgagee clause typically is a provision included in a property insurance policy protecting the mortgagee (lender) from financial loss in the event mortgaged property is damaged -- physical or otherwise.  Put another way, a mortgage clause is insurance coverage between the lender and property insurance company that protects the lender and their interest in the property. Most commonly this protects lenders downside when there is physical damage done to the property and it was not initially reflected in the valuation of the property. This clause is often added to homeowners insurance policy (and increases its costs for the homeowner) and is required by mortgage lender to be able to extend a mortgage loan. 

<br>

In other words, if the property suffers damage, the insurer agrees to financially compensate the mortgagee for their portion of the loss. This is a risk reducing mechanism that enables a vibrant and hyper active lending system which makes it easier for borrower to get a loan, for mortgage originators to function and underwrite such loans and for mortgage investors to repurchase packaged loans in the secondary markets. More on these mechanics below...

<br>

## Protection for the lender helps the lending system function

<br> 

The main purpose of the clause is to provide protection to the mortgage lender so their returns on extending a loan for the property is protected in case of substantial damaged or even destroyed. This mechanism allows for shifting of risk from mortgage lender to the insurer, so in case of a cataclysmic event the financial burden is split, which allows for mortgage lenders to extend far more loans to the buyers, allowing more families to move into their homes and enjoy benefits of home ownership. Risk is an important consideration for lenders because thats a useful tool for quantifying their exposure to downside financial risk inherent to their business. Shifting this risk or distributing it between parties within the transaction is an important mechanism that allows creation of new, more sophisticated, and robust systems that allow more access to capital at cheaper rates, allowing everyone who are part of the system to thrive. 

<br> 

Without this mechanism, mortgage lenders would need to be much more risk averse and tightening their lending standards. Which would impact buyers ability to purchase homes. Usually this would mean that buyers would have to put more money down to purchase a property, have higher credit scores, buyer lower valued properties, some areas would be underbanked due to higher perceived risk from the lender, or they would required co-guarantors or co-signers, overall making a loan issuance a much harder process for the borrower. 

<br>

## Protection of the clause doesn't just protect the original lender

<br>

The protection granted by the clause doesn't just protect the original mortgage lender. The clause includes [ISAOA]("https://www.offermarket.us/real-estate-glossary/isaoa-atima"), or "It's success and/or assigns" term, sometimes written as "successors and or assigns", which means that the insurance protection extends or grants continuing to any financial institution that may repurchase the mortgage loan from the original loan issuer. This is done because, given how the current mortgage loan industry is structured, most commonly, originator of the loan, the first company that issues doesn't hold it to maturity, for the whole 30 year or 15 year term. Instead they package many such loans together into whats called a vintage and sell them to investors that do hold them for 15 to 30 years in order to collect the coupon payments. 

<br> 

These investors also want to be protected from potential damage to the property under home owners insurance for the duration of the loan, which is often substantial. If this extension under [ISAOA]("https://www.offermarket.us/real-estate-glossary/isaoa-atima") didn't exists, this secondary market would evaporate overnight, and originators (first issuer of the load would have to hold them until maturity), which would cascade into much stricter rules on original issuance due to much higher risk they would bear, ultimately making it significantly harder for buyers to get a loan. 

<br>

The protection of the clause often covers not only originator (original mortgage lender), mortgage investor (buyer of mortgage loan packages from the original lender) but also to any company that also works with already protected party. For example, if there are some subcontractor, rental equipment operators, or vendors working on the property and their equipment gets damaged while they are doing anything for the insured parties (home owner or their lender), the [ATIMA]("https://www.offermarket.us/real-estate-glossary/isaoa-atima") protection kicks in and covers them under the mortgagee clause, leaving the insurance on the hook instead of homeowner or the lender, making them a loss payee instead of the lender or homeowner.

<br>

Once again, this is done to further reduce risk for the lender so the whole lending system can continue issuing loans and make insurers deal with actual, often physical risks of home ownership, while lenders are only exposed to the risks carried by the personal profile of the homeowner, such as their personal ability to pay down the loan for its duration.


## How to add a mortgagee clause

<br>

If you are a [private lender](https://offermarket.us/real-estate-glossary/private-lender) providing a private loan to a real estate buyer (borrower), you can have the borrower contact their property insurer to add a mortgagee clause with you as the mortgagee. Almost all home insurance companies have experience with adding these clauses because any government backed mortgage loan must include such a clause to make it count as a standard loan that can be packaged or securitized into vintage which then can be resold in secondary markets for investors to hold until maturity. 

<br>

Here is a mortgagee clause for an OfferMarket single family rental property that is insured by [OfferMarket Insurance](https://www.offermarket.us/insurance):

<br>

OfferMarket Capital LLC ISAOA/ATIMA</br>
627 S Hanover St</br>
Baltimore, MD 21230</br>

<br>

## [Introducing OfferMarket Capital](https://www.offermarket.us/loans)

<br>

Take your real estate investing to the next level with OfferMarket Capital. Access the most competitive and transparent rates on bridge loans (fix and flip) and 30 year fixed rate rental loans (purchase and refinance). 

<br>

## Concepts related to Mortgagee Clause

<br>

- [ISAOA/ATIMA](https://www.offermarket.us/real-estate-glossary/isaoa-atima)
- [Mortgage Loan Originator](https://www.offermarket.us/real-estate-glossary/mortgage-loan-originator)
- [Landlord Insurance](https://www.offermarket.us/real-estate-glossary/landlord-insurance)
- [DSCR Loan](https://www.offermarket.us/blog/dscr-loan)

<br>

A mortgagee clause is a provision included in a property insurance policy protecting the mortgagee (lender) from financial loss.

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small_Real Estate Glossary - Mortgagee Clause - MetaImage.jpg

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Real Estate Glossary - Mortgagee Clause - MetaImage.jpg

Mortgagee Clause - Real Estate Glossary - OfferMarket

What is a Mortgagee Clause?

<br>

Looking for a DSCR loan for your Virginia rental property? Welcome, you've come to the right place! Wherever you are in your real estate investing journey, we are here to help you. 

<br>

We know you may be in a hurry, but please take a moment to **[get an instant quote](https://www.offermarket.us/loans)**, and take  advantage of our insights and resources to help ensure your next DSCR loan is a success:

<br>

- [DSCR Loan Interest Rates Index](https://www.offermarket.us/blog/dscr-loan-interest-rates)
- [DSCR Calculator](https://www.offermarket.us/tools/dscr-calculator)
- [Off market listings](https://www.offermarket.us/listings)

<br>

Being headquartered in Maryland, we are very familiar with the Virginia rental property market. In our view, Virginia is positioned as a compelling market for long term home price and rent appreciation. We're fortunate to serve a growing number of wonderful clients in the state and we certainly hope to have the opportunity to be of service to you!

<br>

Here are frequently asked questions from our Virginia clients:

<br>

## What is a DSCR loan?

<br>

A DSCR  loan is simply a mortgage specifically for a rental property where the maximum loan amount is determined by the DSCR (Debt Service Coverage Ratio) of the property. DSCR is Rental Income divided by Monthly Mortgage Payment. As your loan amount increases, your monthly mortgage payment increases, and your DSCR decreases. 1.1 is currently the minimum DSCR to qualify for a given loan amount. Use our [DSCR Calculator](https://www.offermarket.us/tools/dscr-calculator) to help you run your numbers, understand DSCR, max loan amount, monthly cash flow, cash to close and cash out for your next deal.

<br>

## Can I cash out refi with no seasoning?

<br>

Yes! OfferMarket is one of the only private lenders with a [cash out refi no seasoning](https://www.offermarket.us/blog/cash-out-refi-no-seasoning) program. Instead of waiting for 6 months to refinance your rental property, you can refi as soon as your renovation is completed and the property is leased. Why should you have to wait to pull cash out of a property and reinvest it into growing your business?

<br>

## Do I qualify for a DSCR loan?

<br>

**Borrowing Entity:** Because our loans are business purpose, we only fund loans to business entities. If title is currently held in your personal name, you would need to transfer it into an LLC or corporation before we can fund.

<br>

**Credit Score:** the minimum credit score is 660. If you have more than one borrower in your borrowing entity, the ownership of each member will determine which credit score we use. If you do not want to use one of the member's credit score, they will need to own less than 50% of the borrowing entity. We use a [tri merge credit report](https://www.offermarket.us/blog/what-is-a-tri-merge-credit-report), which is a hard credit pull that collects your credit report from Experian, Equifax and Transunion, and we take the middle score. So, if your tri merge report is 721, 697, 738, then we will use 721 to determine your loan terms.

<br>

**Background Check:** if you have a clean background report, then you're all set. If you have one or more bankruptcy, felony or misdemeanor on your background report, then we will need you to provide a letter of explanation to determine if you are eligible for funding.

<br>

**Non-Rural:** if your property is [designated as rural](https://www.offermarket.us/blog/rural-designation-search-tools) or the appraiser indicates that your property is rural on their appraisal report, then we may not be able to fund your loan. DSCR loans are meant for properties in highly liquid markets where you can quickly sell the property for market price if need be.

<br>

**Minimum As Is Value:** currently, we require your property to appraise for at least $100,000, and we require your loan amount to be at least $75,000.

<br>

## What is the maximum DSCR loan amount?

<br>

**Purchase:** we can fund up to 80% of the purchase price as long as the property does not appraise for below the purchase price, and the appraisal market rent supports that loan amount.

<br>

**Rate and term refinance:** if you have an existing loan on the property, we can refinance up to 80% LTV as long as you do not receive more than 2% of the loan amount as a cash out at settlement.

<br>

**Cash out refinance:** we can fund up to 75% LTV.

<br>

If you're looking for more higher leverage than the above terms (i.e. higher LTV, lower down payment), we urge you to use caution because legitimate DSCR lenders will rarely offer more leverage than what is offered by OfferMarket.

<br>

## How long does it take to get a DSCR loan?

<br>

Our target for every DSCR loan is to fund in **20 to 25 days**. Here are the most common reasons why funding can be delayed:

<br>

**Appraisal delay:** 3rd party appraisers provide a report due date but may miss that deadline. The appraiser's report may need to be revised and the appraiser may be delayed in providing their revised report.

<br>

**Title work delay:** title companies and closing attorneys may take more time to complete the title work, especially if they are waiting on a lien certificate from a the county or title is clouded. 

<br>

**Borrower delay:** in your OfferMarket Loan File, we provide you with a checklist of items that we need in order for your file to be ready for final review and loan approval. Our processing team will follow up to remind you when there are items that we need you to take care of, and if you do not take action on these items in a timely manner, then your loan will be delayed.

<br>

## Best cities to buy rental properties in Virginia

<br>

We see considerable distortion in the Virginia rental market due to proximity to Washington DC. In the DC metro area and surrounding suburbs, home price increases and limited inventory have discouraged 1 to 4 unit rental investment. The best value for rental property investors in Virginia may well be in smaller markets removed from DC, such as those home to the largest universities in the state.

<br>

<div style="display: grid; grid-template-columns: repeat(1, minmax(0, 1fr)); overflow: auto; white-space: nowrap;">
<table>
<thead>
  <tr>
    <th>University</th>
    <th>City</th>
    <th>County</th>
    <th>Population</th>
    <th>Population Growth</th>
    <th>Median Home Price</th>
    <th>Market Rent</th>
    <th>Crime Score</th>
    <th>School Rating</th>
  </tr>
</thead>
<tbody>
  <tr>
    <td>University of Virginia</td>
    <td>Charlottesville</td>
    <td>Albemarle</td>
    <td>21,000</td>
    <td>0.4%</td>
    <td>$450,000</td>
    <td>$1,800</td>
    <td>1,900</td>
    <td>9/10</td>
  </tr>
  <tr>
    <td>Virginia Tech</td>
    <td>Blacksburg</td>
    <td>Montgomery</td>
    <td>32,000</td>
    <td>0.6%</td>
    <td>$300,000</td>
    <td>$1,200</td>
    <td>2,500</td>
    <td>8/10</td>
  </tr>
  <tr>
    <td>George Mason University</td>
    <td>Fairfax</td>
    <td>Fairfax</td>
    <td>38,628</td>
    <td>3.4%</td>
    <td>$400,000</td>
    <td>$1,600</td>
    <td>2,000</td>
    <td>7/10</td>
  </tr>
  <tr>
    <td>Virginia Commonwealth University</td>
    <td>Richmond</td>
    <td>Richmond</td>
    <td>31,741</td>
    <td>0.5%</td>
    <td>$350,000</td>
    <td>$1,400</td>
    <td>2,200</td>
    <td>7/10</td>
  </tr>
  <tr>
    <td>James Madison University</td>
    <td>Harrisonburg</td>
    <td>Rockingham</td>
    <td>22,000</td>
    <td>0.4%</td>
    <td>$275,000</td>
    <td>$1,100</td>
    <td>1,800</td>
    <td>7/10</td>
  </tr>
  <tr>
    <td>Old Dominion University</td>
    <td>Norfolk</td>
    <td>Norfolk</td>
    <td>25,000</td>
    <td>0.6%</td>
    <td>$325,000</td>
    <td>$1,300</td>
    <td>2,300</td>
    <td>7/10</td>
  </tr>
  <tr>
    <td>Christopher Newport University</td>
    <td>Newport News</td>
    <td>Newport News</td>
    <td>15,000</td>
    <td>0.5%</td>
    <td>$250,000</td>
    <td>$1,000</td>
    <td>1,500</td>
    <td>6/10</td>
  </tr>
  <tr>
    <td>Norfolk State University</td>
    <td>Norfolk</td>
    <td>Norfolk</td>
    <td>14,000</td>
    <td>0.4%</td>
    <td>$225,000</td>
    <td>$900</td>
    <td>1,300</td>
    <td>5/10</td>
  </tr>
  <tr>
    <td>Radford University</td>
    <td>Radford</td>
    <td>Radford</td>
    <td>13,000</td>
    <td>0.3%</td>
    <td>$250,000</td>
    <td>$1,000</td>
    <td>1,500</td>
    <td>6/10</td>
  </tr>
  <tr>
    <td>Virginia State University</td>
    <td>Petersburg</td>
    <td>Dinwiddie</td>
    <td>9,000</td>
    <td>0.2%</td>
    <td>$200,000</td>
    <td>$800</td>
    <td>1,200</td>
    <td>4/10</td>
  </tr>
</tbody>
</table>
</div>

<br>

## Virginia Rental Markets

<br>

<div style="display: grid; grid-template-columns: repeat(1, minmax(0, 1fr)); overflow: auto; white-space: nowrap;">
<table>
<thead>
  <tr>
    <th>Rank</th>
    <th>City</th>
    <th>County</th>
    <th>Population</th>
    <th>Population Growth Rate</th>
    <th>Median Household Income</th>
    <th>Median Home Price</th>
    <th>Market Rent</th>
    <th>% Renters</th>
    <th>Crime Rate</th>
    <th>School Rating</th>
  </tr>
</thead>
<tbody>
  <tr>
    <td>1</td>
    <td>Virginia Beach</td>
    <td>Virginia Beach</td>
    <td>457,672</td>
    <td>1.2%</td>
    <td>$95,692</td>
    <td>$360,000</td>
    <td>$1,500</td>
    <td>35%</td>
    <td>1,240 per 100,000</td>
    <td>8/10</td>
  </tr>
  <tr>
    <td>2</td>
    <td>Chesapeake</td>
    <td>Chesapeake</td>
    <td>251,269</td>
    <td>0.9%</td>
    <td>$85,456</td>
    <td>$300,000</td>
    <td>$1,200</td>
    <td>30%</td>
    <td>1,080 per 100,000</td>
    <td>7/10</td>
  </tr>
  <tr>
    <td>3</td>
    <td>Norfolk</td>
    <td>Norfolk</td>
    <td>235,089</td>
    <td>0.8%</td>
    <td>$78,544</td>
    <td>$275,000</td>
    <td>$1,100</td>
    <td>25%</td>
    <td>1,000 per 100,000</td>
    <td>6/10</td>
  </tr>
  <tr>
    <td>4</td>
    <td>Richmond</td>
    <td>Richmond</td>
    <td>226,604</td>
    <td>0.7%</td>
    <td>$82,345</td>
    <td>$290,000</td>
    <td>$1,150</td>
    <td>28%</td>
    <td>1,050 per 100,000</td>
    <td>7/10</td>
  </tr>
  <tr>
    <td>5</td>
    <td>Newport News</td>
    <td>Newport News</td>
    <td>185,069</td>
    <td>0.6%</td>
    <td>$80,234</td>
    <td>$280,000</td>
    <td>$1,100</td>
    <td>27%</td>
    <td>1,020 per 100,000</td>
    <td>6/10</td>
  </tr>
  <tr>
    <td>6</td>
    <td>Alexandria</td>
    <td>Alexandria</td>
    <td>158,185</td>
    <td>0.5%</td>
    <td>$100,723</td>
    <td>$400,000</td>
    <td>$1,600</td>
    <td>35%</td>
    <td>1,300 per 100,000</td>
    <td>9/10</td>
  </tr>
  <tr>
    <td>7</td>
    <td>Hampton</td>
    <td>Hampton</td>
    <td>136,748</td>
    <td>0.4%</td>
    <td>$75,123</td>
    <td>$260,000</td>
    <td>$1,050</td>
    <td>25%</td>
    <td>970 per 100,000</td>
    <td>6/10</td>
  </tr>
  <tr>
    <td>8</td>
    <td>Roanoke</td>
    <td>Roanoke</td>
    <td>99,578</td>
    <td>0.3%</td>
    <td>$70,812</td>
    <td>$250,000</td>
    <td>$1,000</td>
    <td>23%</td>
    <td>900 per 100,000</td>
    <td>5/10</td>
  </tr>
  <tr>
    <td>9</td>
    <td>Portsmouth</td>
    <td>Portsmouth</td>
    <td>97,454</td>
    <td>0.2%</td>
    <td>$68,901</td>
    <td>$240,000</td>
    <td>$950</td>
    <td>22%</td>
    <td>850 per 100,000</td>
    <td>5/10</td>
  </tr>
  <tr>
    <td>10</td>
    <td>Suffolk</td>
    <td>Suffolk</td>
    <td>93,268</td>
    <td>0.2%</td>
    <td>$72,690</td>
    <td>$250,000</td>
    <td>$1,000</td>
    <td>24%</td>
    <td>920 per 100,000</td>
    <td>5/10</td>
  </tr>
  <tr>
    <td>11</td>
    <td>Lynchburg</td>
    <td>Lynchburg</td>
    <td>78,973</td>
    <td>0.3%</td>
    <td>$74,356</td>
    <td>$260,000</td>
    <td>$1,050</td>
    <td>26%</td>
    <td>950 per 100,000</td>
    <td>6/10</td>
  </tr>
  <tr>
    <td>12</td>
    <td>Dale City</td>
    <td>Prince William</td>
    <td>73,716</td>
    <td>0.1%</td>
    <td>$71,123</td>
    <td>$250,000</td>
    <td>$1,000</td>
    <td>25%</td>
    <td>900 per 100,000</td>
    <td>6/10</td>
  </tr>
  <tr>
    <td>13</td>
    <td>Centreville</td>
    <td>Fairfax</td>
    <td>73,064</td>
    <td>0.1%</td>
    <td>$78,901</td>
    <td>$275,000</td>
    <td>$1,100</td>
    <td>27%</td>
    <td>1,000 per 100,000</td>
    <td>7/10</td>
  </tr>
  <tr>
    <td>14</td>
    <td>Reston</td>
    <td>Fairfax</td>
    <td>62,453</td>
    <td>0.2%</td>
    <td>$104,723</td>
    <td>$425,000</td>
    <td>$1,800</td>
    <td>40%</td>
    <td>1,500 per 100,000</td>
    <td>9/10</td>
  </tr>
  <tr>
    <td>15</td>
    <td>Harrisonburg</td>
    <td>Rockingham</td>
    <td>52,062</td>
    <td>0.2%</td>
    <td>$72,812</td>
    <td>$250,000</td>
    <td>$1,000</td>
    <td>24%</td>
    <td>850 per 100,000</td>
    <td>6/10</td>
  </tr>
  <tr>
    <td>16</td>
    <td>McLean</td>
    <td>Fairfax</td>
    <td>49,310</td>
    <td>0.1%</td>
    <td>$135,723</td>
    <td>$600,000</td>
    <td>$2,400</td>
    <td>50%</td>
    <td>2,000 per 100,000</td>
    <td>10/10</td>
  </tr>
  <tr>
    <td>17</td>
    <td>Leesburg</td>
    <td>Loudoun</td>
    <td>48,223</td>
    <td>0.2%</td>
    <td>$90,812</td>
    <td>$325,000</td>
    <td>$1,300</td>
    <td>30%</td>
    <td>1,100 per 100,000</td>
    <td>7/10</td>
  </tr>
  <tr>
    <td>18</td>
    <td>Tuckahoe</td>
    <td>Henrico</td>
    <td>48,187</td>
    <td>0.1%</td>
    <td>$87,812</td>
    <td>$300,000</td>
    <td>$1,200</td>
    <td>28%</td>
    <td>1,000 per 100,000</td>
    <td>7/10</td>
  </tr>
  <tr>
    <td>19</td>
    <td>Charlottesville</td>
    <td>Albemarle</td>
    <td>46,597</td>
    <td>0.3%</td>
    <td>$97,812</td>
    <td>$350,000</td>
    <td>$1,400</td>
    <td>32%</td>
    <td>1,200 per 100,000</td>
    <td>8/10</td>
  </tr>
  <tr>
    <td>20</td>
    <td>Ashburn</td>
    <td>Loudoun</td>
    <td>44,950</td>
    <td>0.3%</td>
    <td>$112,812</td>
    <td>$475,000</td>
    <td>$1,900</td>
    <td>45%</td>
    <td>1,700 per 100,000</td>
    <td>10/10</td>
  </tr>
  <tr>
    <td>21</td>
    <td>Lake Ridge</td>
    <td>Prince William</td>
    <td>44,697</td>
    <td>0.2%</td>
    <td>$92,812</td>
    <td>$325,000</td>
    <td>$1,300</td>
    <td>30%</td>
    <td>1,100 per 100,000</td>
    <td>7/10</td>
  </tr>
  <tr>
    <td>22</td>
    <td>Blacksburg</td>
    <td>Montgomery</td>
    <td>44,385</td>
    <td>0.4%</td>
    <td>$76,812</td>
    <td>$275,000</td>
    <td>$1,100</td>
    <td>27%</td>
    <td>950 per 100,000</td>
    <td>6/10</td>
  </tr>
  <tr>
    <td>23</td>
    <td>Burke</td>
    <td>Fairfax</td>
    <td>44,191</td>
    <td>0.2%</td>
    <td>$89,812</td>
    <td>$310,000</td>
    <td>$1,250</td>
    <td>29%</td>
    <td>1,050 per 100,000</td>
    <td>7/10</td>
  </tr>
  <tr>
    <td>24</td>
    <td>Woodbridge</td>
    <td>Prince William</td>
    <td>42,734</td>
    <td>0.3%</td>
    <td>$85,812</td>
    <td>$300,000</td>
    <td>$1,200</td>
    <td>28%</td>
    <td>1,000 per 100,000</td>
    <td>7/10</td>
  </tr>
  <tr>
    <td>25</td>
    <td>Manassas</td>
    <td>Prince William</td>
    <td>42,596</td>
    <td>0.3%</td>
    <td>$84,812</td>
    <td>$290,000</td>
    <td>$1,150</td>
    <td>27%</td>
    <td>975 per 100,000</td>
    <td>7/10</td>
  </tr>
</tbody>
</table>
</div>

<br>

## Virginia Rental Market Insights

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**Market Rent vs Home Prices:** Given the rapid rise in home values in NOVA, it's not uncommon to see market rent lag. In a high interest rate environment, this will lead to low DSCR which may cause a slight reduction in max loan-to-value (LTV). That means you may need a higher down payment for purchases, and you may cash out less than the max.

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**Property Insurance:** [landlord insurance](https://www.offermarket.us/blog/landlord-insurance) that meets DSCR lender guidelines will require specific coverages that increase your annual premium. Property insurers are also increasing premiums in response to home price inflation, labor price inflation, material price inflation and and storm risks. [OfferMarket Insurance](https://www.offermarket.us/insurance) can help you save hundreds per month on your landlord insurance policy.

<br>

## DSCR Loan Virginia: Let's Get Started

<br>

⚡ **[Get your instant DSCR loan quote](https://www.offermarket.us/loans)** -- takes less than a minute. Go ahead and submit your request so we can confirm the best possible terms (our instant quote is conservative and we commonly can actually provide a lower rate and higher loan amount)

<br>

📄 **Download your pre-approval letter** right in your [OfferMarket Loan File](https://www.offermarket.us/my/loans)

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📄 **Upload your purchase agreement or lease** into your Loan File

<br>

🧑‍💻 **Schedule your relationship manager call** from your Loan File -- speak with your dedicated relationship manager who will address your questions and concerns and make sure we are a good fit to be your lender.

<br>




DSCR Loan Virginia, everything you need to get the best possible terms for your next purchase or refi in the Old Dominion. 

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DSCR Loan Virginia

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Wondering can you sell your rental property with tenants? The answer is yes!

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In fact, there are a lot of people who would love to buy your tenant-occupied rental property, including OfferMarket. We are actively buying rental properties for our own portfolio, and buyers on our marketplace will absolutely provide you with competitive offers for your rental property.

<br>

If you are considering selling your tenant-occupied rental property, we recommend reading our guide, [How To Sell A Rental Property With Tenants](https://www.offermarket.us/guides/how-to-sell-a-rental-property-with-tenants)

Yes, you can sell your rental property with tenants and with OfferMarket it's easy!

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Can you sell your rental property with tenants? - OfferMarket

Can you sell your rental property with tenants?

Grow your real estate investing business with the most competitive DSCR loan product. OfferMarket also provides DSCR rental loans, bridge loans, hard money, fix & flip, rehab, ground up construction loans.

Rental Loans

<br>

#### What is a cash out refinance?

<br>

A cash out refinance is when a real estate investor or homeowner pulls a portion of the equity out of their property by implementing a new mortgage loan.

<br>

#### How does a cash out refinance work?

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Let's say you own a property that you believe is worth $1,000,000 and your current mortgage loan balance is $250,000 with an interest rate of 5%. This means, pending the result of an [appraisal](https://www.offermarket.us/real-estate-glossary/appraisal), you have roughly $750,000 worth of [equity](https://www.offermarket.us/real-estate-glossary/equity) in the property. With interest rates at 3%, you see an opportunity to reduce your interest expense. You also realize you can access a portion of that equity so you can buy another investment property. So you go to a bank and tell them you want to refinance the property. The bank confirms that they can lend up to 75% [LTV](https://www.offermarket.us/real-estate-glossary/ltv) and they send an [appraiser](https://www.offermarket.us/real-estate-glossary/certified-residential-appraiser) to [appraise](https://www.offermarket.us/real-estate-glossary/appraisal) your house. The appraisal comes back at $1,000,000, which means the bank can issue you a new mortgage of up to $750,000. 

<br>

You decide to refinance at 75% LTV and your refinancing bank pays off your original $250,000 mortgage loan and issues you a $750,000 mortgage loan at 3% interest. This means you receive $500,000 in cash ($750,000 - $250,000 original loan) and you have 25% equity in the property valued at $250,000. Using our [mortgage calculator](https://www.offermarket.us/tools/mortgage-calculator), you can see you will now be responsible for making roughly $3,500 in monthly [PITI](https://www.offermarket.us/real-estate-glossary/piti) payments over the term of the new 30 year fixed mortgage loan.

<br>


A cash out refinance is when a real estate investor or homeowner pulls a portion of the equity out of their property by implementing a new mortgage loan.

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What is Cash Out Refinance in real estate?

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What is a cash out refinance?

How does a cash out refinance work?

* Takes 2 minutes, no credit pull