Daily Mortgage Rates LIVE - 09/13/2024 - Small Business Administration Loans

In this episode of Daily Mortgage Rates Live, we’re delving into the essentials of Small Business Administration (SBA) loans—your go-to solution for financing and growing your business! Whether you’re launching a startup, expanding your operations, or managing cash flow, SBA loans offer a range of options tailored to different needs.

Join us as we break down the types of SBA loans available, from the popular 7(a) and 504 loans to microloans and disaster relief funding. We’ll cover eligibility requirements, application tips, and how these loans can help you achieve your business goals with favorable terms and lower down payments.

Hear from experts and successful business owners who’ve navigated the SBA loan process and get actionable insights on making the most of these valuable resources. Tune in to learn how SBA loans can be a game-changer for your business’s growth and success!

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

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 13, 2024 • 03:04:18 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. Then we do a deep dive into a different loan type. And today's loan type is going to be small business administration loans. Definitely some very interesting programs here that Jose will take us through. But first, We'll check out our rates for our standard programs. So Nick, if you're ready, let's go ahead and pull up our live rates and see what they're looking like today for the standard programs. All right. So, uh, definitely still good for rates still at, uh, all time lows and our non QM programs have, uh, updated as well, which they take. a few days longer than the standard. So we'll compare all of our programs here for today. It is September 13th, just after 11 a. m. Eastern. So all our initial rate sheets are live for the morning here for the standard programs. And we will compare the APR. If you'd like a full breakdown of itemized loan estimate of all the fees that go into the APR, please get with one of our team members. They'd be happy to help you out. For the demo, we set up a standard scenario, single family home, 500, 000 purchase, 400, 000 loan amount. That corresponds to 80 percent loan to value, 20 percent down payment. It was an estimated 760 FICO for all these demos, and an estimated 40 percent debt to income ratio. So, let's check out the rates today. Alright, so first up is our 30 year fixed conventional for primary home. That's the typical option most people think of when they think of a mortgage. Rates as low as 5. 625, final APR 5. 915, so right about the same as it was yesterday. And if for any reason our customer doesn't qualify for a conventional option, the next option we typically want to present is an FHA option. FHA allows more leniency on credit issues, as well as a higher debt to income ratio, but does require upfront and yearly mortgage insurance. FHA coming in today, 4. 875, amazing. Final APR, 5. 805. So if our customer qualifies for both, they may consider FHA if they're willing to do that mortgage insurance. And our customers that need to use it, definitely a great option. And moving on to our VA for eligible vets and active service members. If you are eligible, these programs are definitely the best options typically. Rates as low as 4. 99, final APR 5. 275. So if our customer is comparing across the different programs, the VA is obviously going to be the cheapest for the APR. So definitely a great option for our vets and service members. And the final standard option, USDA is only for USDA eligible areas of the country, the rural areas, if the property is eligible and the borrower is eligible, these are great options to consider. USDA coming in today, 4. 875, final APR 5. 586. So if we're comparing our customer to FHA, the USDA is going to be a better option if it's eligible and a better option than conventional when we compare the APRs. So definitely consider that if you're shopping in those areas. And that rounds out all of our standard options that any bank or lender has. But if our customer doesn't qualify, most bankers and lenders have to deny them. But we have 5, 000 other options, starting here with our 30 year picks, non QM, all doc version for a primary. So typically, someone doesn't qualify for a conventional option, two years of tax returns, they need to switch to using alternative docs, bank statements, 1099s, P& Ls, et cetera. We have all kinds of options. This option here, uh, again, non QM just, uh, went down a little bit, takes a couple days. So this is amazing. Bye. Our bank statement option today coming in at 6. 00, amazing, and final APR 6. 309. So as usual, as the non QM went down, now we're well within a half a point of conventional and you see that non QM still tracks within about a half a point there. So great option that we can give to our borrowers that need it. And our non QM options for investments. Definitely a lot of flexibility once we start getting into investment properties. So non QM options such as bank statements coming in at 6. 5 rate. Final APR 6. 823. And we'll compare that to the other investment options. There are no government options. So no USDA, VA or FHA, but we do have conventional rates as low as 6. 25 for an investment property with conventional. Final APR 6. 581. Great option there, but we always recommend our customers to check out our favorite programs, and it's still beating conventional, which is tough, but it's still squeaking by a little bit there for our DSCR option. DSCR stands for Debt Service Coverage Ratio. No employment information needed. No income information needed. We simply use estimated rents from the appraisal to determine a DSCR value. The estimated rents can cover the estimated expenses. Okay. The property cash flows, that's a DSCR ratio of one or higher, which is preferred for the demo. We always use 1. 5 so we can see all the programs. And the first step is our three year prepayment penalty option, which is the most standard option rates coming in today, 6. 25 final IPR 6. 516. So right about the same as conventional, which is amazing. So let's say most investors will choose a DSCR even at a much higher cost. And today they're almost identical. Cool. But we can sweeten the deal with our five year prepayment penalty rates dropped on this quite a bit. It's been quite some time since we've seen DSCR in the five. So this is amazing. 30 year fixed DSCR 80 LTV is what we're at here too, by the way, five year prepay coming in under six, 5. 875. Amazing final APR 6. 181 smoking conventional still with a five year prepay for DSCR. Absolutely amazing. And the final option is a DSCR with no prepayment penalty as some states do not allow it and some investors don't want the prepayment penalty. Rates today for that option, 6. 5 final APR, 6. 823. So that's a touch higher than conventional with no prepayment penalty. So usually recommend our investors to add a prepayment if they would like, but it's typically most investors will still choose this option over conventional as no employment or income docs are needed. So definitely an easier program. And the final two options new, uh, programs that we have here are 30 year fixed second mortgages. So a lot of customers still have a low rate first mortgage, even though rates are great today. Many customers still have lower rates than what we can offer today. So they want to get, uh, uh, cash out without touching the first mortgage. So we can use a HELOC, which is a traditional, or we have our new 30 year fixed second mortgages. For a primary home, we can get cash out with that second mortgage rates as low as 8. 125, on APR 8. 527. And these are not HELOCs, so the rates are much better and they're not adjustable, which is definitely better for most borrowers. And we can use the same program for investment properties. HELOCs are very rare for investment properties, so great option here. Rates as low as 9. 5 final APR, 9. 769 for investors to get cash out using a fixed rate second mortgage. And these are both non QM programs, we can use bank statements and similar. Let's get into today's topic. We love doing these deep dives because we can't pull live pricing for SBA loans. Unfortunately, uh, these are your kind of case by case, uh, SBA loans are also, um, somewhat that they, uh, variable rate, they're adjustable. So, uh, they adjust with the market here. So, uh, you see, Jose has to pull new rates every time we do this show as, uh, the SBA typically tracks, uh, with the primary or similar. So, Jose, let's explain what we can use these for real quick and then let's check out today's options. And again, since it's adjustable, they adjust quite frequently here. So, all right. Good morning, everybody. Thank you for joining us for daily mortgage week slide with the mortgage calculator. SBA stands for small business administration. One thing that I want to, uh, get clear here also, uh, SBA is only for, uh, U. S. citizens and permanent resident aliens. You have to have, uh, 100 percent legal status, uh, in the U. S. to be able to, um, benefit from a small, uh, residence. Business administration loan. Now, what I can say is that SBA can be for real estate or it can be for leasehold leaseholds, right? You can be a restaurant operator, but not the owner of the actual real estate and use an SBA loan to purchase the business or expand the business. So without further ado, let me go and share the options I have. So I can break it down. Um, as Nick was mentioning, SBA is, um, also based on a variable rate, right? It's, it's based on the prime rate plus a margin. Margin can be anywhere from, uh, one to three points, depending on the risk associated, uh, with the, um, transaction and also depending on what the borrower negotiates with their lender. So in this scenario here, SBA, the first scenario, which I think is a great scenario, many people may not be aware that SBA will actually finance a hundred percent of your purchase. This is for scenarios where an existing business, uh, been in existence at least two years currently occupies a space, not necessarily the space that you're buying, but they currently occupy a space as a rental. And now they want to buy a space for the business. Uh, so when transitioning from a rental to an office. owned space. Uh, 100 percent financing of the transaction is possible. Please do be aware that SBA loans are always full dock and the owner has to come, uh, occupy at least 50. 01 percent of the space. So here you're looking at 10. 75 as the rate, but I do state that rate can be anywhere from 9. 75 to 11. 75 because it is a variable rate. And our next option is the more traditional 90 percent LTV option, right? This is either scenarios where the business is either new or does not currently rent the space, uh, for an existing business. So this one, 90 percent LTV is the max, right? We got here 10. 5. And again, that's variable rate. That could be anywhere from, uh, nine and a half to 11 and a half. Main thing to note here is the structure of the deals. So now this is what I mentioned to you, SBA business expansion, Or leasehold improvements, right? This is the one a lot of people aren't aware that you can do. Great option. Now, it's not going to be a 30 year term on these loans. They're usually going to be something like 20 years, right? But it is a great way to grow your business. And they do, uh, lend up to, uh, 90%, right? So, but in the case where there isn't real estate, you know, they're just going to value the business. And last option here we have, you can actually refinance your, uh, existing, uh, SBA debt, right? So the term can be as short as 10 years if no real estate debt. Is involved. So, I mean, real estate, excuse me, is involved business debt. That isn't good. Standing can be refinanced as long as the business's cash flow. is being improved. Uh, something also to note here, no minimum credit score, they're going to underwrite. And this is the same with all the SBA options. There's no minimum credit score. They're going to underwrite the total risk of the transaction and then, uh, realize, um, you know, see what they can do. So the term on this is as short as 10 years, if no real estate is involved, to as long as 25 years. if real estate is involved. So definitely look to the mortgage calculator for your SBA loans, commercial loans, as well as all the great non QM and agency options that we have. All right. I do not see any questions here. Uh, but definitely some amazing programs there from the SBA great, uh, tools to have in your tool belt there So no still no questions. We'll go ahead and wrap it up Remember that we do this at 11 a. m Eastern every weekday where we go through our live rates and then do a deep dive into a different loan type So we will see you all next week with some new topics for the next episode of daily rates live with the mortgage calculator Have a great weekend