If you’re a real estate investor looking to take advantage of a 1031 Exchange transaction, you may be facing some time restrictions that require a quick closing. Fortunately, our team is here to help. Here are three key points to keep in mind:
- Time is of the essence:
With a 1031 Exchange, you typically have a limited window of time to complete the transaction and avoid paying capital gains taxes. That means you need a mortgage company that can move quickly and efficiently to get your loan approved and closed on time.
- High DTI can be a challenge:
If your income from tax returns yields a high debt-to-income ratio (DTI), you may have trouble qualifying for a conventional loan. But don’t worry – our DSCR cash flow product can help. We don’t require verification of employment, personal income, or DTI. Instead, we use the cash flow of the subject property to qualify you for the loan.
- 1031 Exchange can be used for a down payment:
One of the benefits of a 1031 Exchange is that you can use the proceeds from the sale of one investment property to purchase another. But did you know that you can also use the exchange to cover your down payment? That’s right – our team can help you structure your loan so that you can use the exchange funds to cover your down payment and closing costs.
With our expertise and flexible loan products, we’re here to help you make the most of your 1031 Exchange transaction.
Connect with one of our loan consultants to learn more.