Daily Mortgage Rates LIVE - 09/10/2024 - 5-10 Unit Property Loans

In this episode of Daily Mortgage Rates Live, we’re shining the spotlight on 5-10 unit property loans—a key topic for real estate investors and property managers looking to scale their portfolios! Discover the unique challenges and opportunities that come with financing multi-unit properties, and learn how these loans can help you maximize your investment potential.

We’ll explore everything from loan qualification criteria to interest rates, and what lenders are really looking for. Plus, get insights from industry experts who’ll share their experiences and strategies for securing the best terms. Whether you're a seasoned investor or just starting out, this episode will provide you with the knowledge and tools to navigate the world of 5-10 unit property financing with confidence.

Don’t miss out—tune in and take your real estate game to the next level!

For more episodes visit: https://themortgagecalculator.com/Page/Daily-Mortgage-Rates-LIVE-Video-Podcast

About The Mortgage Calculator:

The Mortgage Calculator is a licensed Mortgage Lender (NMLS #2377459) that specializes in using technology to enable borrowers to access Conventional, FHA, VA, and USDA Programs, as well as over 5,000 Non-QM mortgage loan programs using alternative income documentation! 

Using The Mortgage Calculator proprietary technology, borrowers can instantly price and quote thousands of mortgage loan programs in just a few clicks. The Mortgage Calculator technology also enables borrowers to instantly complete a full loan application and upload documents to our AI powered software to get qualified in just minutes!

Our team of over 350 licensed Mortgage Loan Originators can assist our customers with Conventional, FHA, VA and USDA mortgages as well as access thousands of mortgage programs using Alternative Income Documentation such as Bank Statement Mortgages, P&L Mort

Catch all the episodes of Daily Mortgage Rates LIVE at https://themortgagecalculator.com/Page/Daily-Mortgage-Rates-LIVE-Video-Podcast

Check out all episodes of Daily Mortgage Rates LIVE at https://themortgagecalculator.com/Page/Daily-Mortgage-Rates-LIVE-Video-Podcast

The Mortgage Calculator is a licensed Mortgage Lender (NMLS #2377459) that specializes in using technology to enable borrowers to access Conventional, FHA, VA and USDA Programs, as well as over 5,000 Non-QM mortgage loan programs using alternative income documentation! Non QM Loans include Bank Statement Mortgages, P&L Mortgages, Asset Based Mortgage Programs, No Ratio CDFI Loan Programs, DSCR Investor Mortgages, Commercial Mortgages, Fix and Flip Mortgages and thousands more!

To apply for a mortgage please visit our Quick Mortgage Quote Page at https://themortgagecalculator.com/Mortgage/QuickQuote

The Mortgage Calculator is a registered DBA of Mortgage Calculator Company LLC. NMLS ID #2377459. Programs and rates are subject to change without notice. Mortgage Calculator Company LLC is licensed in the following states that require specific licensing disclosures: AZ (#1040352), CA CFL (60DBO-171188), GA Georgia Residential Mortgage Licensee (#2377459), IL MB.6761755 Illinois Department of Financial and Professional Regulation, Division of Banking, 100 West Randolph, 9th Floor, Chicago, IL 60601 1-888-473-4858. Not licensed or conducting business in New York.

For more info visit https://themortgagecalculator.com...

Transcript

Restream recording Sep 10, 2024 • 03:02:26 PM: 0:09

So welcome everyone. My name is Kyle Hiersche. I'm the COO of the Mortgage Calculator joined here by our president Nick Hiersche and our CSO Jose Gonzalez. We are a lender that specializes in non QM loans. And what we do every weekday at 11 a. m. Eastern on the show is go through our actual live mortgage rates. And then we do a deep dive into a different loan type. And today's loan type is going to be five to 10 unit property. So definitely an interesting topic here today, but first we'll go through our regular live rates for a few different standard programs. So Nick, if you're ready, let's go ahead and pull up today's rates and see what they're looking like. All right, rates continue to be at multi year lows here, so absolutely amazing. And we will compare all of the rates for today. It is September 10th, just after 11 AM. So all the standard rate sheets are live here for our initial rates. And we'll compare the APR. If you'd like a full breakdown of all the itemized fees that go into the APR, please get with our team members. They'd be happy to help you out. For the demo, as we do every day, we'll set a standard scenario, a single family home, 500, 000 purchase price, 400, 000 loan amount corresponds to 80 percent 20 percent down payment. And we use an estimated 760 credit score and an estimated 40 percent debt to income ratio. So with those settings, let's go ahead and check out the rates for today. Absolutely smoking. So first up, our 30 year fixed conventional option for a primary home. The typical loan that most people think of when they think of a mortgage. Coming in today, 5. 625. Final APR, 5. 939. Absolutely amazing. Again, uh, over one year lows here. So we'd love to see the rates go down. Definitely recommend everybody get out there. That was on the fence. Now, for any reason, our customer doesn't qualify for a conventional, we typically want to quote an FHA option to compare FHA allows more leniency on credit issues and a higher debt to income ratio overall, but does require upfront and yearly mortgage insurance. FHA is smoking today coming at 4. 875. Final APR 5. 829. So notice if our customer qualifies for both, FHA could be a tad cheaper, but does require that upfront and yearly mortgage insurance. And for our customers that need to use it, definitely a good option. Now, moving on to our VA, which moved quite a bit from yesterday. Amazing for our eligible vets and active service members. VA is an amazing program. Rates today as low as 4. 99, finally under five. Absolutely amazing. Finally, PR of the standard funding fee 5. 287. So as you can see, this is going to be a better option for any of our VA eligible borrowers when we compare to FHA and conventional. So definitely take advantage if you are eligible and the rates are smoking. And moving on to the final standard option here, USDA is only for our properties in USDA eligible areas. That's the rural areas of the country. The property is eligible and our borrower is eligible. These options are amazing. Smoking rates today as well, 4. 875. Final APR with all the standard fees here, 5. 598. So if our customer's shopping in these areas, they want to compare that to an FHA, USDA is going to be a touch cheaper and it's going to be cheaper than conventional as well. So definitely a good option for those rural properties. And that rounds out the standard options that any bank or lender can offer. But if our customer doesn't qualify, unfortunately they may have to deny them, but we have 5, 000 plus additional options. Starting with our non QM alt doc option. So our customer doesn't qualify with conventional docs, two years of tax returns, et cetera. Needs to use alternative docs. We can switch to this option using bank statements, 1099s, uh, asset related, P& Ls, all kinds of different options. We went over last week. Rates today for bank statement coming in at 6. 125, lowest in a long time, final PPR 6. 450. So as usual, we're within about a half a point of conventional. It's typically where the non QM tracks. So amazing options for just a slightly higher cost for our customers that need to use alternative docs And we have tons of options for investment properties. First up are non qm alt docs So again bank statement or similar 6. 625 rate today final apr 7. 042 So that went down a little bit from yesterday. We love to see everything go down and let's compare that to our other investment options There are no government options for investment properties. So no va usda or fha You But we have our conventional option rates as 5 final APR 6. 838 So that's a touch cheaper than our alt doc, but not cheaper than our favorite options Absolutely smoking again today our dscr rates a dscr stands for debt service coverage ratio No income information needed no employment information needed We simply use estimated rents from the appraisal to determine a dscr ratio The estimated rents can cover the estimated expenses. That's a ratio of one or higher aka the property cash flows You For these demos, we always set the ratio at 1. 5. So we can see all of the programs. Three year prepayment is a pretty standard option here. Rates as low as 6. 375 with a three year prepay. Final APR 6. 669, beating conventional, amazing. And we can even add a five year prepay to some of our options to get the rates even lower, rates as low as six flat. Uh, this will be amazing once this drops under six, hopefully later this week. Final APR 6. 321, again, beating conventional with a DSCR loan. Absolutely amazing. And our final DSCR option, a no prepayment penalty option. Some states don't allow it and some investors don't want one. No problem. Rates come in today. 6. 75. Finally, PR 7. 080 and notice that's a touch higher than conventional, but I'd still say a hundred percent of investors would take a DSCR over a conventional when the pricing is that close. And the final two demos here, our newest product, 30 year fixed second mortgages. So a lot of customers have still a low rate first mortgage, but may need to access some equities and cash out. We can do that instead of using a HELOC, which is typically the only option using our 30 year fixed second mortgages for primary home and get cash out as low as 8. 375 rate final APR set 8. 786. So that's much lower than a HELOC option and fixed instead of adjustable. And we can use the same program for investment properties. There are rarely HELOCs for investment properties, so these are amazing options. Rates as low as 9. 5 to get that cash out for investors. Final APR at 9. 739. And these are both non QM programs, so can use bank statements and similar. Now let's get into today's topic, which is going to be on some of our favorite options. Again, DSCR allows us tons of flexibility for investors out there and we can even work with our small commercial property. So that's why we have the caveat here, five to 10 unit commercial properties because remember anything over four units is technically a commercial property. But Jose is going to explain how we have this sweet spot of this small commercial property where we can apply our traditional DSCR loans, as long as the property fits the mold here. So Jose, let's talk about what it has to be. And then let's look at the libraries. Yeah, that's the key component. Good morning, everybody. Uh, basically that this product, even though it is a commercial product, we were able to underwrite it. Via a hybrid program that we have that, uh, basically underwrites it pretty much the same as a one to four unit. Uh, the most important thing to note is that we will not be looking at the zip code of the property and checking population density and other demographics. That seems to be the issue, uh, when you are submitting this property via the. Uh, normal commercial conduits. Uh, so this is, uh, underwritten via regular, uh, 1 to 4 unit DSCR guidelines, mostly. So let me go ahead and share the options with you today. Um, this is very important to note because, uh, not only are the interest rates lower Of this option, but you're going to have many more opportunities to close loans. So with this option here, our first option is a purchase. 25 percent down payment is the lowest down payment, uh, for this option. 75%. Percent LTV being the highest LTV and we're looking at 8.875 at a cost of 1.4, two five points. Uh, where we, uh, taking this to a commercial conduit, we'd probably would be looking at an interest rate anywhere from one point half to 2% higher, plus a higher cost. Our second option here is our low credit score option with a 660, 9. 125, 60 percent LTV at a cost of 2. 55 points. And now for our refinance option, 70 percent LTV is the maximum. LTV for this option. And this at our highest credit score tier, you're looking at 9 percent interest rate at a cost of 1. 55 points. And our last option is our cash out 60 percent LTV, 660 credit score. We're looking at 9. 25 rate at a cost of 2. 25. 0. 55 points. So very good option here. Very good options. As you saw all the way from our low credit score option to our preferred credit tier option. Uh, and definitely a great, uh, alternative to your traditional commercial conduits. Now, what I will state is in the traditional commercial conduits, we are able to go to 80 percent loan to value on that. So if you do not mind the higher, the higher interest rate and a little bit higher costs, we can offer 80 percent LTV. One question here are exceptions ever made to allow additional units There are other products for when it's more than 10 units But basically that would now fall more under the commercial type loan rather than this small Commercial loan type that we have it follows very closely the one to four unit property guidelines All right, I don't see any other questions. So I think we'll go ahead and wrap it up there, but some very cool options. So remember that we do this show at 11 a. m. Eastern every weekday where we go through our live rates and then we do a deep dive into a different loan type. So we'll be back tomorrow with a new loan type to talk about. We'll see you all tomorrow, 11 a. m. Eastern for the next episode of Daily Grates Live with Mortgage Calculator.