[Verse 1] Sarah wants a house but needs a loan today Fixed-rate mortgage keeps her payments steady all the way Thirty years of certainty, her monthly bill won't climb While adjustable rates fluctuate with market's changing time Interest-only payments seem appealing at the start But principal stays untouched, debt won't depart [Chorus] LTV and DSCR, the ratios that matter most Loan-to-Value tells us how much equity you boast Debt Service Coverage shows if income pays the cost Without these magic numbers, financing dreams get lost Eighty percent or lower keeps your lender satisfied DSCR above one-twenty means your cash flow qualified [Verse 2] Commercial property needs deeper analysis today DSCR divides the income by debt payments you must pay One-point-two-five means healthy cushion for the bank Below that threshold and your application's sank Net operating income minus vacancy and maintenance Divided by mortgage payments shows financial sustenance [Chorus] LTV and DSCR, the ratios that matter most Loan-to-Value tells us how much equity you boast Debt Service Coverage shows if income pays the cost Without these magic numbers, financing dreams get lost Eighty percent or lower keeps your lender satisfied DSCR above one-twenty means your cash flow qualified [Bridge] Conforming loans fit Fannie Mae's requirements tight Non-conforming jumbo loans exceed their standard sight PMI protects the lender when your down payment's thin Recourse means they'll chase you if foreclosure begins Non-recourse limits liability to property alone Choose wisely which mortgage type you'll call your own [Verse 3] Construction loans convert to permanent when building's done Balloon payments lurk ahead, refinancing must come Amortization schedules map your principal's decline While cap rates help investors judge if deals are fine Leverage amplifies returns but magnifies the risk Smart financing balances reward with what's at risk [Chorus] LTV and DSCR, the ratios that matter most Loan-to-Value tells us how much equity you boast Debt Service Coverage shows if income pays the cost Without these magic numbers, financing dreams get lost Eighty percent or lower keeps your lender satisfied DSCR above one-twenty means your cash flow qualified [Outro] Master these fundamentals, let the ratios be your guide Real estate financing wisdom keeps success by your side
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