What Is an LLC for Rental Property? A limited liability company (LLC) is a type of business structure that gives your rental property business its own legal identity, separate from your personal finances. When you own real estate through an LLC, the company — not you personally — holds the title to the property.  In…

How Mortgage Rates Are Set Before we teach you how to get the lowest mortgage rate, it helps to understand what influences the rates lenders offer. Lenders look at broader economic conditions and your personal financial profile to determine your specific mortgage rate.  Here are the main factors affecting rates: Economic indicators: The Federal Reserve’s…

A real estate escalation clause is an addendum to a purchase offer that authorizes your bid to increase automatically by a predetermined amount if another buyer submits a higher offer.  Here’s how it works in practice: You submit an initial offer on a home at $400,000, but you include an escalation clause that says you’ll…

Mid-term rentals are furnished properties leased for 30 days to 12 months, targeting traveling professionals, remote workers, and relocating families who need temporary housing. These types of rentals bridge the gap between short-term rentals and traditional year-long leases while targeting professionals who need temporary housing but want more stability than nightly bookings provide. Mid-term rentals…

Fannie Mae plays an important role in the housing market by purchasing and guaranteeing mortgages from lenders. The HomePath program serves as a way to manage and resell properties that Fannie Mae acquired through foreclosure. What Is Fannie Mae? Fannie Mae, officially known as the Federal National Mortgage Association, is a government-sponsored enterprise that was…

A subject-to mortgage, often called “buying subject to the existing mortgage” or “sub to,” refers to a real estate transaction where the buyer takes ownership of a property while the seller’s original mortgage remains in place. The buyer agrees to make the monthly mortgage payments, but the loan stays in the seller’s name. The phrase…

Closing costs refer to all the fees and expenses you pay to finalize a real estate transaction. These costs are due on closing day and the typical range falls between 2% and 5% of the home’s purchase price, though this percentage varies based on location, property value, and loan type. Buyers and sellers have different…

Rent-to-own is a housing arrangement where you rent a home with the option or obligation to purchase it later. Unlike standard renting, where you pay for temporary housing with no equity building, rent-to-own gives you the opportunity to own the home you’re living in. Part of your monthly rent may go toward the purchase price,…

A home equity line of credit is a revolving credit line secured by your home that allows you to borrow money as needed, similar to using a credit card with a large limit. Unlike a home equity loan, which gives you a lump sum upfront with fixed payments, a HELOC provides ongoing access to your…

What Is a Non-Traditional Mortgage? A non-traditional mortgage, also known as a non-QM loan, is a home loan that doesn’t follow the strict guidelines set by Fannie Mae, Freddie Mac, or the Federal Housing Administration (FHA). These loans center on flexibility in how lenders verify your income and assess your creditworthiness.  Unlike traditional mortgages that…

Company Overview: Griffin Funding vs United Wholesale Mortgage (UWM) Let’s look at each company in turn: who they are, whom they serve, and how they operate, so you can see how they stack up. Griffin Funding Overview Griffin Funding is a direct-to-consumer mortgage lender known for specializing in VA loans, DSCR loans for real estate…

Borrowers can refinance with Griffin Funding to lower their rate, change their loan term, or alter their loan type. We offer a wide range of refinance options, including rate-and-term, cash-out, VA IRRRL, FHA streamline, and much more. Explore traditional refinance options as well as self-employed and investor refinancing solutions. Griffin Funding Refinancing Options We offer…

Property Assessed Clean Energy (PACE) financing has become an increasingly popular option for homeowners looking to upgrade their properties without taking on traditional debt. Designed to support energy-efficient and resiliency-focused home improvements, PACE financing programs offer a unique alternative to standard financing by tying repayment to the property itself. With longer terms, flexible qualification, and…

As rising home prices continue to challenge buyers, the topic of introducing a 50-year mortgage has come up as an unconventional way to improve home affordability. This extended loan term can reduce monthly payments, but it also comes with important trade-offs that borrowers should understand.  This guide breaks down the key advantages and drawbacks so…

Mortgage amortization is the built-in repayment plan that gradually pays off your home loan over time. Even though your monthly payment often stays the same, what that payment does changes as the years pass. Early on, you’re mostly covering interest on the loan, while later on you’re mostly paying down the balance. Knowing how amortization…

What Is Net Operating Income (NOI)? Net operating income measures how much money your investment property generates after you pay operating expenses but before you make mortgage payments. This metric gives investors, lenders, and appraisers a standardized way to evaluate property performance. You need to understand what is net operating income because it strips away…

What to Look for in a DSCR Lender Choosing the best DSCR lender for your unique situation means evaluating several critical factors that directly impact your investment returns and borrowing experience. Here’s what to look for in a DSCR loan lender:  Interest rates and loan terms: Compare both fixed and adjustable rate options across different…

What Is Cash on Cash Return? Cash on cash return (CoC) is a metric that measures the annual income you generate from a rental property relative to the amount of cash you actually invested. It tells you how much money your property puts back into your pocket each year compared to what you paid upfront.…

Financial hardships happen to many Americans, but they don’t have to end your homeownership dreams forever. The Federal Housing Administration (FHA) provides specific waiting periods after major credit events like bankruptcy, foreclosure, and short sales. These FHA waiting periods help you plan your path back to homeownership and prepare for a successful loan application. What…

As Bill Lyons, CEO of Griffin Funding, shares: “I believe the saying ‘Homeownership is the first step on the stairway to wealth’ to be true.” That belief reflects Griffin Funding’s mission to help everyday Americans use homeownership as a foundation for long-term financial freedom. This conviction is echoed by housing-market data. As Lawrence Yun, Chief…

1. Appreciation: Grow Your Property Value Over Time Appreciation refers to the increase in your property’s value over time. It’s one of the most significant benefits of real estate investing because it naturally builds wealth as your asset becomes more valuable. Over the decades, U.S. home values have shown a long-term upward trend. Even though…

Understanding the Basics Before you can make an informed decision about investing in stocks vs. real estate, it helps to understand what each investment actually involves.  What Is Real Estate Investing? Real estate investment means buying physical property or investing in real estate investment trusts (REITs). Most people think of rental properties when they hear…

Planning to buy a home? One of the biggest questions you’ll face is figuring out how much cash you need upfront. This down payment calculator will show you what you can afford to spend on a house, what your monthly payments will look like, and how different down payments affect your mortgage. Whether you’re a…

The current tax structure creates challenges for homeowners who have seen their property values soar over recent years. Many find themselves facing substantial tax bills that can eat into their profits from selling their home. Now, rising home values have created a “lock-in effect” where homeowners choose not to sell rather than face substantial tax…

What the Federal Funds Rate Is and Why It Matters When banks need short-term liquidity, they borrow from each other overnight, and the federal funds rate is the cost of those loans. It might sound like an obscure banking detail, but it’s actually one of the most powerful tools the Federal Reserve has to manage…

DSCR Loans A DSCR loan is a powerful financing tool that evaluates investment properties based on their income potential rather than your personal financial profile. What Is a DSCR Loan? DSCR stands for Debt Service Coverage Ratio, which measures a property’s ability to cover its mortgage payments through rental income. This financing approach shifts the…

What Is Griffin Funding? Griffin Funding is a California-based national mortgage lender that has built its reputation on serving borrowers who don’t fit the traditional lending mold. Founded with the mission to make homeownership accessible to more people, Griffin Funding specializes in conventional, government (VA and FHA), and alternative loan products like non-QM loans. We…

Traditional retirement investments remain popular, but they come with significant downsides: Stocks: Market crashes can devastate your portfolio overnight, and volatility increases as you age without time to recover from losses. Bonds: Minimal returns struggle to keep pace with inflation, eroding your purchasing power over time. Annuities: Lock up your money with limited flexibility and…

Mortgage recasting, also known as a mortgage loan recast, is when you put a substantial lump sum toward what you owe on your home, and your lender adjusts your monthly payment based on the new, reduced balance. The payment goes down because you’re spreading a smaller balance over the remaining years of your loan. Your…

What Is Mortgage Pre-Qualification? Mortgage pre‑qualification is an informal, preliminary assessment of how much you might qualify to borrow based on information you provide to a lender. In this stage, the lender asks for estimates of your income, debts, assets, and credit standing, but typically does not perform a full credit check or demand documentation.…

The Challenges of Buying a Home on One Income Purchasing a home on a single income can present several financial hurdles that make the process more complex. One of the biggest challenges is limited borrowing power. Lenders often qualify buyers based on income and existing debts, so a single-income household may be approved for a…

What Are Gift Funds for a Down Payment? Gift funds for a down payment are monetary gifts from acceptable sources that you can use toward purchasing a home. The key characteristic that defines a gift is that you never have to repay the money. This distinguishes gift funds from loans, which must be repaid and…

Try Our Closing Cost Calculator What Are Closing Costs? Closing costs are the collection of fees and expenses paid at the end of a real estate transaction. They include both lender charges and third-party service fees, which are essential for completing the loan and transferring property ownership. Typical closing costs include: Loan origination and underwriting…

Rent Estimator Use our free rent estimator to get an instant estimate for any property address and start maximizing your investment potential today. Griffin’s rental estimator includes a rent range of low to high in addition to the estimate. What Is a Rent Estimate? A rent estimate is a comprehensive, data-based assessment of how much…

How Much Is My House Worth? Curious about your home’s current value? Use the home value estimator below to get a quick and accurate estimate based on local market data. Why Use a Home Value Estimator? Knowing your home’s current market value is more than just satisfying curiosity—it’s a powerful tool for financial planning.  If…

What Is the SALT Deduction? The state and local taxes (SALT) deduction is a federal tax benefit for taxpayers who itemize their deductions. It allows these taxpayers to deduct the cost of their state and local taxes, including income tax or sales tax, as well as property taxes, from their federal income for tax calculation…

Core FHA Refinance Requirement Factors Before we discuss the specific FHA refinance requirements for each program, let’s discuss the requirements that apply across all of them. Understanding these core requirements will help you determine which refinance option best fits your situation. Credit score: While FHA loans typically allow lower credit scores than conventional loans, most…

What Is a Crypto-Backed Mortgage? A crypto mortgage is a home loan that uses cryptocurrency as collateral instead of following traditional lending practices. Unlike conventional mortgages that rely heavily on income verification and credit history, these loans focus on the value of your digital asset holdings. This approach has gained traction as cryptocurrency adoption has…

What Is the Mortgage Interest Deduction? The mortgage interest deduction is a tax-saving deduction that applies to homeowners who make mortgage payments and itemize their tax deductions. With this deduction, homeowners can deduct the total amount of interest they pay on their mortgage from their taxable income.  As it pertains to the mortgage interest deduction,…

Selling real estate can generate significant profits, but understanding the tax implications beforehand prevents costly surprises. You need to know exactly how much you’ll owe in capital gains taxes before you sign that final paperwork. This guide walks you through everything you need to know about calculating capital gains tax on real estate, including step-by-step…

What Is PMI? PMI is insurance for your lender that protects them if you fail to make your mortgage payments, also known as defaulting on the loan. It doesn’t protect you as the borrower, but it allows lenders to offer mortgages to buyers who can’t put down the traditional 20% down payment.  PMI is required…

Buying your first house is exciting, but it can also feel overwhelming when you start looking at all the costs involved. The good news is that with proper planning and a solid budget for first-time home buyers, you can navigate the entire process confidently and avoid costly surprises along the way.  This guide will break…

What Is a Home Renovation Loan? A home renovation loan is a borrowing option specifically designed to fund home improvement or remodeling projects. These loans provide homeowners with the capital needed to enhance their property, whether they’re planning cosmetic updates like new paint and fixtures or major structural changes such as room additions or complete…

What Is an FHA Appraisal? An FHA appraisal is a required evaluation for anyone seeking an FHA loan that determines both the home’s market value and whether it meets government safety standards. This assessment protects both the borrower and the Federal Housing Administration by ensuring the property serves as adequate collateral. Unlike conventional appraisals that…

What Is the One Big Beautiful Bill Act? The One Big Beautiful Bill Act is a comprehensive tax overhaul designed to extend and enhance provisions from the 2017 Tax Cuts and Jobs Act while introducing new economic incentives. First, here’s a quick One Big Beautiful Bill Act summary: The legislation emerged from President Trump’s desire…

Try Our Debt-to-Income Ratio Calculator What Is a Debt-to-Income Ratio? A debt-to-income ratio measures how much of your earnings you spend on debt payments each month. It’s a financial snapshot that shows lenders what portion of your paycheck goes toward existing loans and credit obligations before you even consider taking on new debt. There are…

Use Our Cash-Out Refinance Calculator Use our comprehensive cash-out refi calculator below to explore your refinancing options and see how much cash you could potentially access from your home’s equity. What Is a Cash-Out Refinance? A cash-out refinance is a mortgage refinancing loan that replaces your existing loan with a new mortgage for more than…

What Is a Buyer’s Market? Knowing what a buyer’s market is can help you best approach your planning. A buyer’s market occurs when there are more homes available for sale than there are people actively looking to buy. This typically gives buyers the advantage, allowing them to negotiate better prices and terms. It also means…

Why It’s Important to Set a Mortgage Budget A house you can afford today should still be affordable tomorrow. Overspending on a mortgage can leave you “house poor,” meaning most of your income goes to your home, leaving little for savings, travel, or emergencies. Setting a mortgage budget isn’t just smart; it’s a requirement for…

What Is a Lender Credit? In simple terms, a lender credit is a rebate offered by your mortgage lender to reduce your upfront out-of-pocket costs, specifically your closing costs. It can sound like free money, but there’s a trade-off: you agree to take on a slightly higher mortgage interest rate in exchange. Think of it…

What Is a Barndominium? A barndominium (or “barndo”) is a portmanteau of “barn” and “condominium,” coined to describe a building that fuses barn-like utility with residential comfort. Originally developed for ranchers and rural dwellers who wanted to live close to their livestock or equipment, today’s barndominiums are stylish, spacious, and incredibly flexible. At their core,…

What Is a Cost Segregation Study? A cost segregation study is a tax tool that breaks down the various components of a commercial or residential investment property to accelerate depreciation deductions. Instead of depreciating the entire building over the standard timeline, this engineering-based analysis identifies specific elements that qualify for shorter depreciation periods. Under normal…

What Is a Non-QM Loan? A non-qualified mortgage (non-QM) loan is a type of mortgage that does not meet the Consumer Financial Protection Bureau’s criteria for a “qualified mortgage.” Qualified mortgages typically follow strict guidelines regarding debt-to-income ratios, documentation, and income verification. In contrast, non-QM loans offer more flexible underwriting standards and are tailored for…

So what is a 1031 exchange in real estate? While the concept of a 1031 exchange might sound appealing, its intricacies and the associated rules require a thorough understanding to harness its full potential. In this article, we’ll discuss the fundamentals of 1031 exchanges, including the rules and regulations governing them. Whether you’re a seasoned…

For many potential home buyers who delayed their purchasing decisions until after the election results, understanding the housing market under Trump has become a top priority. Trump’s economic-focused campaign included promises to combat inflation, reduce regulations, and implement new trade policies. Now that it’s been more than a year since Trump took office, both industry…

What Is Bonus Depreciation and How Does It Work? Bonus depreciation is a powerful tax incentive that allows real estate investors to deduct 100% of the cost of eligible assets in the same year they’re placed in service. Investors can use bonus depreciation to deduct 100% of things like: Equipment Appliances Building improvements Real estate…

What Affects Mortgage Refinance Rates? Several key factors impact the mortgage refinance rates lenders offer: Credit Score: Borrowers with higher credit scores typically qualify for lower refinance rates. Lenders view them as less risky. Loan-to-Value Ratio (LTV):  If you have significant equity in your home, you’re more likely to get favorable refinance terms. Debt-to-Income Ratio…

How Tax Policy Directly Impacts the Housing Market Tax incentives guide housing demand and affordability across the country. When the government offers tax breaks for homeownership, more people can afford to buy, which typically pushes prices higher. Remove those incentives, and demand often softens, sometimes leading to price corrections. The mortgage interest deduction is a…

What Are Tariffs and Why Do They Matter for Housing? Tariffs are taxes governments place on imported goods to protect domestic industries or generate revenue. When the U.S. imposes tariffs on construction materials from other countries, American companies must pay more to import these products. This cost increase doesn’t disappear — it gets passed down…

What Is a Mortgage Commitment Letter? A mortgage loan commitment letter is a formal document from a lender stating they’ve approved your mortgage application and are committed to providing the loan under specific terms. This document is one of the final stages in the mortgage approval process and indicates that the lender has thoroughly reviewed…

What Is a First-Time Home Buyer Program? A first-time home buyer program is specialized financial assistance that helps individuals and families purchase their first home. These programs reduce common barriers to homeownership by offering benefits like lower down payments, reduced interest rates, tax incentives, and closing cost assistance. Contrary to what the name suggests, you…

What Happens to the Housing Market During a Recession? A recession sends shockwaves through the economy. Companies slow hiring, people lose jobs, and consumer confidence drops. When uncertainty rises, large financial decisions like buying a home get delayed — sometimes indefinitely. If you’ve been dreaming about buying a home, you might hesitate when headlines scream…

If you plan to purchase or refinance a home in the coming year, understanding the conventional loan limits in 2026 is crucial. These limits directly impact how much you can borrow without crossing into jumbo loan territory, which comes with different rules and higher qualification standards.  Whether buying a single-family home or a multi-unit property,…

What Affects Mortgage Rates? Mortgage rates fluctuate constantly based on a variety of economic variables and the particular rate a borrower qualifies for depends on personal factors. If you’re planning to buy a home, refinance, or invest in property, it’s important to understand the factors that affect mortgage rates so you can better time your…

Your Refinancing Options Most owners have several refinancing pathways depending on their financial goals and current mortgage situation. The right choice depends on whether you want to change your loan terms, access equity, or have a simplified refinancing process. Available mortgage refinance solutions include:  Rate-and-term refinancing: This popular option allows you to change your interest…

What Is an FHA Loan? An FHA loan is a mortgage insured by the Federal Housing Administration, a division of the U.S. Department of Housing and Urban Development (HUD). The FHA doesn’t lend money directly – instead, it provides insurance that protects lenders if borrowers default on their loans. This government backing enables approved lenders…

What Is a USDA Loan? A USDA loan is a mortgage backed by the United States Department of Agriculture designed to boost homeownership in rural and some suburban communities. These loans support low-to-moderate income borrowers who might struggle to qualify for conventional financing. The standout feature of USDA loans is the 0% down payment requirement,…

What Qualifies as a Second Home? A second home is a property you purchase in addition to your primary residence. Unlike your main home where you live most of the year, a second home serves as an occasional home that you personally occupy for a portion of the year. This might include a beach house…

What Does It Mean to Refinance a House? Refinancing a house involves replacing your existing mortgage with a new loan, typically with different terms that better suit your current financial needs. The new mortgage pays off the original loan, and you begin making payments on the new one. Three main types of refinancing options exist:…

Biweekly Mortgage Calculator Ready to see what biweekly payments can do for you? Enter your info into the biweekly mortgage payment calculator to find out. What Is a Biweekly Mortgage Calculator? Interested in paying your mortgage off faster and paying less interest over the life of your loan? It may be time to start making…

Rent vs Buy Calculator Use the rent or buy calculator below to estimate the costs involved with renting a home or buying one over time. How the Rent vs Buy Calculator Works The rent vs buy calculator can be used to get a clearer picture of whether renting or buying makes the most financial sense.…

How the Mortgage Payoff Calculator Works In order to use our mortgage payoff calculator, there are a few key pieces of information you should have on hand: Loan amount: Your original loan amount or your current balance if you don’t know your original loan amount. Loan term: The length of your loan in years. Interest…

Being conditionally approved means your lender has reviewed your financial documents and believes you’re a strong candidate for the loan. However, certain conditions still need to be met before final approval is granted. These may include: Submitting additional documents Verifying assets Clarifying parts of your credit or employment history Think of conditional approval as a…

What Is a Condo? A condominium, or condo, is a type of property where individuals own their specific unit but share ownership of common spaces like hallways, pools, and recreational areas. Unlike standalone houses, condos are often part of a homeowners association (HOA), which manages maintenance, fees, and community rules. Some buyers purchase condos as…

How Much Home Can I Afford With a $100k Salary? The answer largely depends on your financial situation and other key factors. While a $100K salary provides a solid foundation to buy a house, affordability is influenced by your monthly expenses, debt, savings, and loan terms. Lenders use these factors to determine how much you can…

How Do Property Taxes Work? Property taxes are local government fees imposed on real estate, determined by the value of the property you own. These taxes are usually assessed annually and are used to fund local services, like public schools, roads, police, fire departments, or other community needs. The amount you pay is determined by…

What Is a Portfolio Loan? Mortgage lenders don’t usually keep the loans they originate. Instead, mortgages are frequently bought and sold to other lenders in the secondary market to allow them to free up capital and originate more loans for more borrowers. Selling a mortgage doesn’t affect a borrower or the loan terms, but you…

The principal limit represents the maximum amount you can borrow with a reverse mortgage. This figure determines how much money actually reaches your pocket after paying off existing mortgages and loan costs. Your reverse mortgage principal limit depends on three key factors: Age: Older borrowers qualify for higher principal limits because lenders expect the loan…

How Does a Home Equity Line of Credit Work? A home equity line of credit (HELOC) is a revolving line of credit that allows homeowners to borrow against their home’s equity as needed. Unlike a traditional loan, it provides ongoing access to funds during a draw period, followed by a repayment phase. While HELOCs typically…

A second mortgage is a loan you take out against the equity in your home while keeping your first mortgage in place. Equity is the difference between what your home is worth and how much you still owe on it. For example, if your home is valued at $300,000 and you owe $200,000 on your…

How a Home Equity Loan Works A home equity loan lets you borrow money by using your home’s equity as collateral. Equity is the difference between your home’s value and what you still owe on your mortgage. For example, if your home is worth $300,000 and you owe $200,000, you have $100,000 in equity. A…

Can I Refinance a Home Equity Loan? Yes, you can refinance a home equity loan (HELOAN). A HELOAN is a type of loan that lets you borrow a lump sum of money based on the equity you’ve built in your home. A home equity loan typically has a fixed interest rate and predictable monthly payments.…

Home equity loan and home equity line of credit requirements are essentially the same since they’re both secured by your home. Here’s what you need to know about qualifying: 1. Credit Score Requirements Your credit score helps determine whether you qualify and what interest rate you’ll receive on a home equity loan. Griffin Funding may…