INVEST IN REAL ESTATE CLASS

🏠 Residential Home Loan – Key Elements

1. Credit Profile Programs like FHA Loan allow lower scores (often ~580+), while conventional loans require stronger credit.

2. Income & Stability

3. Debt-to-Income Ratio (DTI)

4. Down Payment

5. Property AppraisalThe home must meet value and condition standards.

🏢 Commercial Property Loan – Key Elements

This is a different game. It’s less about you and more about the deal itself.

1. Property Income (Cash Flow is King)Lenders focus heavily on whether the property generates income.Key metric:

2. Down Payment / EquityCommercial loans typically require:

More skin in the game = less risk for the lender.

3-Property Type & RiskDifferent properties carry different risk levels:

4- Lease Structure

~43–50% depending on the program

Conventional: 3%–20%+

FHA: 3.5%

Some programs: 0% down (with qualifications)

DSCR (Debt Service Coverage Ratio) Usually must be ≥ 1.20–1.30 Meaning the property earns 20–30% more than the debt payment

Multifamily

Retail / office