Dear Investors,
As a mortgage broker since 2004, I’m going to let you in on a few secrets about the mortgage industry, how mortgage brokers get compensated and how borrowers like yourself can shop or find the best mortgage rates.
Here is the low down, there are two ways mortgage professionals are compensated (three if you count Big Banks like Wells Fargo).
Borrower is provided a ‘par’ or base rate (true cost of the loan) and borrower paid compensation at closing (in the form of point or fees) of which a portion goes to the mortgage broker. This might also include a ‘sub-par’ rate of buying down the interest rate with pre-paid interest or “discount points.”
Borrower is provided an interest rate above ‘par’ and the broker is compensated for the margin (difference between cost of the loan) by the lender at closing.
Less commonly - if you go to a brick and mortar bank the employees are generally compensated off of volume and have little to no influence on the terms provided to the borrower.
So what is the ‘BEST’ option? That really depends on circumstances. Every borrower and transaction is different with variables that could influence the most optimal lender. For example if you are a private JP Morgan client and they want to provide you a no appraisal or process Jumbo loan near prime rates, that is likely going to be your best option. If on the other hand you are an out of state borrower, offering on a competitive listing - you might elect to utilize the lender suggested by your real estate professional for continuity and familiarity with the localized market.
When it comes to getting the BEST interest rate there are a few steps borrowers can and questions to ask when comparing loan options to help with their decision making process.
Speak to at least two parties: One from experience or immediate connections such as your bank and one from a recommendation, referral or research. Mortgages are still a personal business with personal information, the individual and company you work with should be professional, responsive and aligned with our priorities and personality. With considerable assets and investment on the line, having someone on your team that is reputable will be at least as important as the actual rate and terms provided. Speaking with at least a two lenders will give a better framework for a final lender decision. Here are some questions to ask:
Experience. There is no substitute for this in the mortgage industry.
References or Ratings. Reviews speak volumes. This is a tough business and results are not one-size fits all.
Transactional specific experience. STR/DSCR closings - any special lenders, programs or details to be aware of? DSCR loans are not ‘the income works’ there are specific guidelines for every lender. Things to ask for are: ‘How do they determine the STR income?’ For example: Can existing income be utilized? Is a AirDNA report acceptable? Can.that be reviewed prior to contract or appraisal? Property type..the list goes on.
Be aware of brokers that sound like salesman. Mortgages are service based. Quoting a rate and delivering it on time are two different animals. Mortgage brokers are the plumbers of the real estate transaction, they get the least credit but nothing moves without them. The guy that you can trust to come on an an emergency call after-hours is the one that likely has the resources to provide
Process and Procedure. Technology is a broker and borrowers best friend when coordinating multiple transactions (real estate & lending) simultaneously. A healthy transactional portal and processes can reduce email and text communications.
Efficient Quotes and Pre Quals. If you’re not quite in contract or don’t have a prospect in mind, a lot of the pricing and terms leg work can be invalid in just a few days..certainly it will give you a baseline, but a strong pricing engine or way to see or revise Pre Quals can eliminate a lot of waiting or worse..jeopardize a prospect - if it’s late on Sunday and there are multiple offers in place. Being able to see terms online or update a Pre Qual letter for an offer are useful and indicative of a user-friendly process.
Ask for the ‘no-cost’ option or rate, and compare from there. For example many lenders will offer ‘credits’ to help off-set loan costs, request the closest option to $0 in points and/or $0 in TOTAL out of pocket (with credits to off-set fixed costs like underwriting fees, title) for an apples to apples comparison between lenders.
Transparency. I personally prefer relationships and systems that communicate clearly from inception. I’ve worked for a lot of mortgage companies and although I’m personally always five-star reviewed, often the level of service is limited to the resources and processes of the organization the broker is licensed with. A quick review of the organizational reviews could also be helpful.
Who do we refer?
We are glad you asked. As both a licensed NMLS Mortgage Broker and Oregon & California Real Estate Broker, my primary business is actually not mortgages, I primarily sell coastal luxury STRs so indirectly - I’m in the AIRBNB Mortgage business. Short Term Rental investing is often more similar to commercial investing than residential in that investors are focused on income, expenses and best utilizing the capital and leverage available to optimize the investment.
To operate cohesively within the niche space of AirBNB investment, real estate professionals need to have a complete and healthy understanding of investment property loans, options and where to go to get investors the loans that can make or break the deal.
Although roughly half of our STR investors are usually ‘full income verification’ often DSCR or other creative income strategies are required to qualify. With direct insight into programs, processors, underwriters and pricing desks we often collaborate with our preferred lending partners for direct updates, structuring and stipulations to ensure invest-ability and outcomes.
Our strategic Lending Parter
With 20+ years in the mortgage industry under my belt there isn’t too much in the space that can surprise or impress me. One group that has and who I currently hang my license with is Loan Factory.
Truly tech forward company that both I and my referred clients have all had an exceptional experience with. Since I don’t work ‘both sides’ of any real estate + mortgage transactions - I refer my AIRBNB and STR investors to the first person I recruited into the industry 2004 - Mr. Chiofalo with Loan Factory.
What We Like
Accurate mortgage pricing tool that does not require a credit check (provided the inputs are accurate so are the terms displayed).
Self Revise Pre Quals. In the STR business there are often pressures that do not accompany standard real estate transactions. I like the ability to adjust Pre Quals on the fly without a request from the mortgage broker.
LOTS of lenders that provide rock bottom rates. There has not been a loan scenario referred that was not doable or highly competitive. In most instances that my investors shop, they come back to Loan Factory because the terms were that much stronger. Also if there is a quirky requirement (like closing in or transferring to an LLC) they’ve found a home for the loan.
Convenience and transparency. The platform itself is very user friendly and the teams behind the scenes are nothing short of outstanding. My clients know where they are in the process and what they need to provide and each has received the terms promised at inception.
For a quick quote or to schedule a AIRBNB Mortgage consultation to qualify or compare terms visit us below!
⬇️ Some of the AIRBNB, STR & DSCR Loan Programs we offer:
NON-QM (Alternative income & asset verification) Spotlight: Asset Depletion & DSCR
Fixed Second Lien Programs up to $500K (Primary, Second, Investment)
JUMBO ARM Specials
Weekly Program & Rate Highlights
👏🏼 With 40+ years of combined lending experience and the power of our 240+ Lenders - we dare you to compare!
📌IMPORTANT MORTGAGE NEWS: 2026 CONFORMING LOAN LIMITS INCREASE!
📊 MORTGAGE PROGRAMS
💰Asset Depletion Qualification Loans
Did you know that you don’t have to sell your portfolio or assets to utilize them to qualify? Instead - borrowers can use their money market or retirement account funds as ‘income’ to qualify. Here’s how: Multiply the proposed payment by two-ish (40% DTI) then take 70% of the value of the portfolio and divide it by 60-84 months. If the balance is sufficient to cover the ‘proposed’ payment, high-asset borrowers can qualify for near conventional loan rates (MUCH BETTER THAN DSCR!)
🥈Closed-End Second Liens are the perfect way to turn built-up equity into opportunity—whether your clients need funds for home improvements, debt consolidation, or new investments.
Credit Score down to 680
Max LTV Up to 90%
Max Loan Amount $750,000
Max Loan Amount up to $350,000 on DSCR
Max Combined Loan Amount $3.5 million
Full Doc, Bank Statements, P&L, WVOE and DSCR
Primary, Second Homes or Investments
Loans up to $750,000 with a minimum of $150,000
Cash-out or rate-term refinance
Owner-occupied, second homes, and investment properties
12 or 24 months’ business bank statementsFull doc (2 years’ tax returns and YTD P&L, or 2 years W-2’s with YTD pay stubs for non-self-employed)
Rates are 30-year fixed, 20-year fixed, 15-year, or 10-year fixed
Up to 50% DTI, depending on LTV
On 1-Unit SFR with a loan amount of $250,000 or less, 2055 exterior appraisal with AVM can be utilized in lieu of full appraisal. AVM must have a high or medium confidence score.
Why Investors Love It💚
• Keeps the first mortgage intact — no need to refinance
• Fixed-rate stability and predictable payments
• Loan amounts up to $500,000
• Available for primary, second homes, and investment properties
• Fast approvals with common-sense underwriting
🏦First Lien HELOC Example Program
Amount:
· Up to $750,000
Loan Purpose:
· Purchase Money, Rate and Term Refinances and Cash Out Refinances
Minimum Draw:
· $100,000
Appraisal Requirement:
· Full URAR Appraisal is required
🧮 Example No-Ratio Program - Primary & 2nd Homes - When income docs don’t work, we do. This loan requires:
No Income or DTI Requirements
Up to $2.5M Loan Amount ($3M with exception)
80% Max LTV for Purchase/Rate-Term
75% Max LTV for Cash-Out
No Cash-Out Seasoning
620 Min FICO
100% Gift Funds Allowed (for down payment & closing costs)
💡Example DSCR Loan Programs (Debt-Service-Coverage-Ratio)
No Seasoning on Cash-Out Refinances: Unlock equity immediately.
No Current Appraised Value Seasoning: Just renovated? We use the most recent appraisal.
No Chain of Title Seasoning: Need to add a new borrower to title? No problem!
Vacant Properties - we lend on vacant properties.
Recently Listed Properties - off MLS by closing.
Fair Market Rent or Current Rent - use whichever is Greater!
Weekly Rate & Program Highlights
🐘 JUMBO ARM rates are reaching enticing levels with one of our premier jumbo lenders. Intended for prime conventional borrower of primary and secondary residences.
Working on a luxury purchase that requires additional buyer incentives and elite attentive client care? Call Joseph 24/7/365 @ 954-480-7478
🚒 Seller Concessions are HOT: Did you know that on second home loans the maximum seller paid concession with as little as 10% down is 6% of the sales price!?
Below is a Seller Concession Cheat Sheet:
🧑🏼🎤Pro Realtor & Investor Concierge: Are you a Realtor closing 10+ Deals annually or an individual investor with more than 3+ properties owned? Ask about our repeat client and portfolio programs that centralize operations. Book your 15 minute Private Mortgage Consultation here.
Call, text or email us anytime,
Joseph Chiofalo | Loan Factory | Licensed NMLS Mortgage Broker
📲954-480-7478 📧 [email protected] | LIVE QUOTES ☑️
Anthony AJ Wong | Loan Factory | Licensed NMLS Mortgage & Licensed OR + CA Real Estate Broker - Sesemi STR Brokers Powered by Fathom Realty
📲541-800-0455 📧 [email protected] | Shop OR STRs🌲