Daily Mortgage Rates LIVE - 09/12/2024 - CDFI No Income Verification Loans

In this episode of Daily Mortgage Rates Live, we’re exploring the game-changing world of CDFI No Income Verification Loans! If traditional income documentation has been a stumbling block in your path to homeownership or investment, this episode is for you.

We’ll break down how Community Development Financial Institutions (CDFIs) offer a unique pathway to financing without the usual income verification hurdles. Discover how these loans work, who qualifies, and the benefits they can offer, especially for those with non-traditional income sources or financial situations.

Hear from CDFI experts and borrowers who’ve successfully navigated this process and learn how to leverage these loans to achieve your real estate goals. Tune in and unlock the door to new financial possibilities with CDFI No Income Verification Loans!

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 Mortgages, Asset Based Mortgage Program

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 12, 2024 • 03:06:18 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 this show is go through our live mortgage rates for a few standard programs. Then we do a deep dive into a different loan type and today's loan type is very special, a CDFI no income verification loan. So we'll talk about that here in a moment. First, let's see what the rates look like. So Nick, if you're ready, let's go ahead and check out today's rates. All right, definitely continues to be good news for rates. So looking pretty good here today. We'll check out the rates for this morning is September 12th, just after 11 a. m. Eastern. So the initial rate sheets are live for today. And we will compare across the programs and compare the APR. If you'd like a full breakdown of the itemized fees that go into the APR, please get with one of our team members. We have 300 loan officers that would be happy to help you out. For the demo today, as we do every day, we'll set up a basic scenario to compare. We'll set up a standard single family home, 500, 000 purchase, 400, 000 loan amount, corresponds to 80 percent loan, 20 percent down payment. We'll use an estimated 760 credit score and an estimated 40 percent debt to income ratio. So with those settings, let's open up the rates for today. All right. So first option we want to look at is our 30 year fixed conventional, which is what most people think of when they think of a mortgage loan or a primary home rates as low as 5. 625 today, final APR 5. 915. And again, these are one year lows, which is amazing. Now, if for any reason our customer doesn't qualify for conventional, typically the next option we want to present is an FHA option, which allows more leniency on credit issues, as well as a higher debt to income ratio overall, but does require upfront and yearly mortgage insurance. Rates as low as 4. 875 for FHA today. Final APR with all the fees, 5. 794. So if our customer qualifies for both, FHA could be a touch cheaper, but does require that yearly mortgage insurance and our customers that need to use it, definitely very comparable option when you compare the APRs here. And moving on to our VA, only for our eligible vets and active service members, but these programs are amazing. Again, coming in at one year lows today, rates of those 4. 99, final APR 5. 275. So if we compare across the programs, obviously our VA eligible borrowers are going to want to choose a VA program as the APR is much less when we compare across. And moving on to our final standard option here. USDA is only for USDA eligible areas. That's the rural areas of the country. If the property is eligible and our borrower is eligible, this is a great option to consider. Rates as low as 4. with all the fees 5. 586. So, if we compare that to an FHA, which is usually what one of our customers shopping in those areas will be doing, the USDA is going to be a touch cheaper, and a touch cheaper than conventional as well. So, definitely a good option for those rural properties. That rounds out the standard options that every bank or lender has, but if our customer doesn't qualify, unfortunately, other banks or lenders have to deny them. That's where we love to present our 5, 000 additional options, starting here with 30 year fixed non QM, all doc options for a primary home. So if a borrower doesn't qualify for conventional using tax returns, etc., needs to switch to alternative docs, such as bank statements, 1099s, P& Ls, and similar, This is our alt doc program coming in today. Rates as oh 6.125 or bank statement are similar, final A PR 6.450. So when we compare that to conventional, we're always usually within about a half a point just to switch to alt docs, which is great for our borrowers that need to switch very comparable options here. And we love to help our borrowers that need that extra help and our alt doc options for investments. Tons of flexibility once we get into investment properties here. So first up, our alt doc bank statement are similar. Coming in at 6. 625, final APR is 6. 951, and we'll compare that to our other investment options. Remember, there are no government options, so no VA, but we do have our conventional option for investment properties. Coming in today, 6. 375 rate, final APR is 6. 710, so that's beating our AltDoc option. But not quite beating our favorite options here. The DSCR stands for Debt Service Coverage Ratio. No income information or employment information is needed. Simply use the estimated rents from the appraisal to determine a DSCR ratio. The estimated rents can cover the estimated expenses, aka the property will cash flow monthly. That's a ratio of one or higher, which is preferred. For the demos here, we put a ratio of 1. 5 so we can see all the programs. With a three year prepayment penalty, which is standard, we're coming in at 6. 25 right today. Finally, PR 6. 516, so a touch cheaper than conventional. Absolutely amazing. And we can sweeten the deal with a five year prepayment for some of our programs, and that comes in today at 6. 00. Finally, PR 6. 321, beating conventional with a DSCR is absolutely amazing. And the final DSCR option we have is a no prepayment penalty option, as some states do not allow it, and some investors prefer not to have it. Looks like this updated recently, which is great, rates as low as 6. 625 today, final APR 6. 951. So just a touch higher than conventional. So I'd say, uh, most, if not a hundred percent of investors would still choose a DSCR when we're within this, uh, 0. 2 here, 0. 25 of price. And the final two options we always go over here that show up on the screen are 30 year fixed second mortgages, especially as rates have been higher than, uh, than typically in the last few years. These are great options as our customers that have a low rate first mortgage. Don't want to touch that first mortgage, but still want to get some cash out. Traditionally, a HELOC is used, but we have now our 30 year fixed second mortgage options for a primary home with rates as low as 8. 125, which is lower than a HELOC and it is fixed rate, which is superior than a variable rate typically. And final APR 8. 527 to get that cash out of their primary home without touching that first mortgage. And these are non QM programs, we can use bank statements and similar. And same option for our investors. He locks are very rare for investment properties. So this is a great option to not touch that first mortgage and get some cash out rates as well as 9. 5 finally PR 9. 7 39. Now let's get into our very unique. Options today, uh, which is, uh, CBFI, no income options. So as Jose will explain, these are typically what would be, uh, illegal, right? Uh, types of loans to do. But now, uh, the government has assisted our borrowers that need to use these programs to do what would otherwise be illegal. So Jose explained how we can get around this. And how we can help our borrowers that need that extra help in this case. All right. Good morning, everybody. Thank you for joining us for daily rates live with the mortgage calculator. Um, So first, let me get into what CDFI stands. And I'd also like to state if you really want all the details, make sure that you tune in to the training that we're going to have today at 12 Eastern Standard Time on CDFI loans. But CDFI stands for Community Development Financial Institution. This is a financial institution that provides financial services to low income communities. and underserved populations. So, um, there's a specific term, a CDFI eligible, right? When a borrower is CDFI eligible, they will receive a half a percent lower interest rate than other borrowers that are going to apply for the program that aren't CDFI eligible. It is open to all members of the population. However, C. D. F. I. Eligible borrowers, which would be, um, hispanic borrowers and african american borrowers are the ones that are going to receive a 0. 5 percent lower interest rate. And as nick mentioned, this program actually does allow us to break the law. The Dodd frank act, which states that primary and second homes have to exhibit an ability to repay. This loan does not have ability to repay requirements because of the nature of the loan trying to have as wide of a lending footprint as possible. However, there are some controls. Obviously it is maximum, uh, 80 percent loan to value and the reserve requirement is, uh, as high as 12 months or as low as nine months, depending on the loan to value. So let's go ahead and share the examples that I have for you today. Yeah, first example is at our maximum credit tier 740 or above. That is, uh, what you need, uh, for the best scores. Actually, 720 will still get you an 80 percent LTV. It's just going to be a lower, a little bit higher cost to the rate. So at our best tier here, 740 or above. We do have a 9. 125 is our rate and the cost is two points. There are a couple of additional options at a little bit lower cost and discount fee, but so I'm trying to keep it uniform all across the board here at 2 percent charge and the options that I'm sharing. So this is. That is our preferred credit. Then our next credit tier down at which, uh, the LTV drops is a 680. Uh, well, 680 is the minimum credit score for 25 percent out. So 680 to 719 actually will get you 75 percent LTV. And in this scenario here, you're looking at a 9. 625 rate, uh, at the same two points loan discount fee. So again, 680 to 719 will get you 75 percent LTV. And I'm quoting these all as CDFI eligible borrowers. And our lowest credit tier would be 660 to 679 here. It is a 35% Down payment, 65% LTV, and you're looking at 9.5% interest rate and 1.75 points for our 65% LTV purchase. And now for our three refinance options. Our top tier here is 740 plus. Now this option does require a 740 or above credit score to get the maximum LTV of 70 percent. For the cash out for this option, and here we have 9.25 is the rate at a cost of 1.75 points for our seven 40 plus borrower. And again, reminder, seven 40 is the minimum credit score for the 70% LTV option. And now if the score is between a 700. A 7 39 60 5%. LTV is the maximum LTV, and we are looking at 8.875 is the interest rate and 1.75 points loan discount fee for 65% LTV with a minimum 700 credit score. Cash out refi. And our last option is that our minimum credit score of 660. 660 again is the minimum credit score for purchase and the minimum credit score for a cash out refi. 60 percent LTV is the maximum LTV here for this cash out refi. And we're looking at 9. 5 percent interest rate. at a cost of two points. So do remember this program is applicable for primary and second homes. The second home interest rates are exactly the same as the primary interest rate. So very good product. Uh, borrower relocating, borrower lives outside the country, not reporting income in the U. S. wants to buy a second home in the U. S. That's a perfect solution provided by the C. D. F. I. L. All right. I don't see any questions. Surprisingly, I don't see any questions, but definitely a unique, amazing program there. But no questions. So we'll go ahead and wrap it up. Remember that we do this at 11 a. m. Eastern every morning where we go through our live rates and do a deep dive into a different topic. So we'll see you all tomorrow at 11 a. m. Eastern for the next episode of daily rates live with the mortgage calculator.