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Market Pulse & Equity Power: September Lending Update for Arizona Investors

October 01, 20252 min read

Market Pulse & Equity Power: September Lending Update for Arizona Investors

By Andrew Augustyniak | Neighborhood Loans

Market Update: Fed Cuts ≠ Mortgage Rate Cuts

The Federal Reserve recently announced a rate cut, and while that grabbed headlines, it did not translate into an immediate drop in mortgage rates. Mortgage rates are driven by the bond market and investor demand, not the Fed Funds Rate directly.

That means while short-term consumer debt (like credit cards or HELOCs tied to prime) may see relief, mortgage rates are still holding higher than many expected. The silver lining? Market volatility has cooled, and we are starting to see more stability in pricing — a positive for planning your next acquisition.

DSCR Loan Pricing: Getting Competitive

For real estate investors, there’s good news. DSCR (Debt Service Coverage Ratio) loan pricing has been tightening and is now approaching what we’ve historically seen with traditional Fannie Mae investment property loans.

This is a big shift. For years, DSCR loans carried a noticeable premium. Now, with spreads shrinking, investors can get flexible, no-income-verification financing at rates much closer to conventional. That means:

  • Easier scaling without tax return headaches

  • More competitive cash flow models

  • Faster execution on deals (great for hot Arizona markets)

If you’ve been sitting out because of DSCR pricing, it may be time to run the numbers again.

Unlocking Liquidity: Our AI HELOC

The other powerful tool we’re seeing investors use is our AI-driven HELOC, available at theHELOC.com. Unlike most banks, which shy away from investment property lines of credit, our product is designed for real estate entrepreneurs.

  • Works on primary, second homes, AND investment properties

  • Quick approvals and fast closings through AI-driven valuations

  • Interest-only payments on what you draw

  • No need to refinance out of a low first mortgage

This is a strategic way to tap equity for down payments, renovations, or liquidity reserves — without disturbing your existing loans. Rates may not have dropped the way many hoped after the Fed move, but investor-specific lending is becoming more competitive. Between improving DSCR pricing and innovative tools like the AI HELOC, investors have more ways than ever to unlock capital and position themselves for the next opportunity.

As AZREIA’s preferred lending partner, I’m here to help you explore these strategies and tailor financing that works for your goals.

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