Daily Mortgage Rates LIVE - 09/19/2024 - USDA Loans

Welcome back to Daily Mortgage Rates LIVE! In today’s episode, we're exploring USDA loans—a fantastic financing option for those looking to buy a home in rural or suburban areas. If you’ve ever wondered how to make homeownership more accessible in less populated regions, this episode is for you!

We’ll break down what USDA loans are, how they work, and why they’re an excellent choice for eligible buyers. From zero down payment options to competitive interest rates and flexible credit requirements, we’ll cover all the benefits that make USDA loans stand out.

Our experts will also discuss eligibility criteria, the application process, and recent updates that could affect you. Whether you’re dreaming of a quiet countryside retreat or a suburban home with space to grow, this episode will give you the insights you need to take advantage of USDA financing.

Join us on Daily Mortgage Rates LIVE! and discover how USDA loans can pave the way to your ideal home in a rural or suburban setting.


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 US

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 thousands of Non-QM mortgage loan program variations 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 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...

Transcript

Restream recording Sep 19, 2024 • 03:04:20 PM: 0:09

All right. 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 actual live mortgage rates. Then we do a deep dive into a different loan type. Today's loan type is going to be USDA loans. So we'll go through that here shortly, but first. We'll do what we do every morning, which is pull up the live rates. So Nick, if you're ready, interesting day today to see what the rates are looking like, let's pull them up and check them out. Right. So yes, more good news. Obviously rates are at a Lowe's for the last year and a half now, about most of the rates were already priced in there for the changes, but the fed changes were announced yesterday, which is definitely a good sign. So the rates are roughly the same as they were yesterday. They were already reduced. But we'll check out the rates for this morning. It is September 19th, just after 11 a. m. Eastern. So all the standard programs have their initial rate sheets live. We'll set up a standard scenario, prepare the APR. If you'd like a full breakdown and itemized loan estimate that breaks down all the fees that go to the APR, please get with our team members. They'd be happy to send that over for the demo. We always set a single family home, 500, 000 purchase, 400, 000 loan amount that corresponds to 80 percent loan, 20 percent down payment. And we set everything to a estimated seven 60. FICO credit score and an estimated 40 percent to income ratio. So let's check out the live rates today. So again, not much change since, uh, yesterday, even though it was a lot of big news. Uh, but, uh, it's already been at one and a half year lows here. First up, our 30 year fixed conventional primary rates as low as 5. 625 LAPR 5. 915 here. And if for any reason our customer doesn't qualify for a conventional option, typically want to send the next option as an FHA quote, FHA allows more leniency on credit issues and a higher overall debt to income ratio, but does require upfront and yearly mortgage insurance. Rates as low as 4.875 for FHA today final, a PR 5.794 with the mortgage insurance, all the fees. So if our customer qualifies for both, they may consider FHA, could be a touch cheaper, but does require that mortgage insurance, our customers that need to use it. Definitely a great option. And our VA is only for our eligible vets and active service members. If you are eligible, these programs are amazing. Rates of those 4. 99. Finally, if you have the standard funding fee here, 5. 275. And notice the APR is going to be lower than FHA or conventional. So definitely the best option for our eligible vets and service members. And USDA is our topic for today, but we'll pull up the standard option as we do every day. USDA is only for properties in USDA eligible areas, the rural areas of the country. If the property is eligible and our borrower is eligible, this program is good to look at. 4. 875 today. Finally, if you are with all the fees, 5. 598. So it's a touch cheaper than FHA, uh, in this example, for our customers looking in, uh, one of those areas and that's cheaper than conventional. So great option for customers looking in those special areas and Jose will go into all the details today. Now that rounds out the standard options that every bank or lender has, but if our customer doesn't qualify, many banks and lenders have to deny them, but we have 5, 000 additional options here, starting with a 30 year fixed non QM alt doc option. So if our customer doesn't qualify for a conventional using their tax returns, needs to switch to alternative docs for some reason, we switch to our non QM alt doc option. We can use bank statements, 1099s, P& Ls, asset related, all kinds of options. Bank statement option coming in today at 6. 00 final APR 6. 309. So as usual, we're within a half a point of conventional switching to all docs, which is amazing. And we have our investment property options, tons of options here. First up our non QM all docs. So bank statement or similar coming in today, 6. 375 final APR 6. 694. And hopefully we see all these non QM options start to drop after the big news yesterday. And we do not have any government options for investments, so no FHA, VA, or USDA, but we do have conventional 6. 125 today, final APR 6. 452, which is cheaper than our all talk option for a conventional, which is awesome. And for the first time in quite a while, also cheaper than our DSCR option. DSCR is our favorite options here, stands for debt service coverage ratio, no income needed from the borrower, no employment needed from the borrower, simply use the estimated rates from the appraisal. Let's determine a DSCR ratio. The estimated rents can cover the estimated expenses. That's a ratio over one, aka the property cash flows monthly. This option here has a three year prepayment penalty coming in today, 6. 25, final APR 6. 529, just a touch above conventional. I'd still say a hundred percent of investors typically prefer DSCR even when the cost is substantially more. And we can sweeten the deal and beat conventional still with our five year prepay, amazing rates as well as 5. 875 when we add a five year prepay. Final APR, 6. 193, smoking conventional there. And we do have a no prepayment penalty option coming in today, 6. 375 rate, final APR, 6. 694. So just a touch above conventional to go with no prepay, which is a great option for the states that don't allow it and investors that don't want it. And if our investor is willing to add the prepayment penalty, we can lower the rate even more. So great options there. And moving on to our 30 year fixed second mortgages. These are non QM options that are alternatives to HELOCs. Typically a customer that has a low rate first mortgage, lower than the rates we're looking at today, typically would look to a second mortgage or HELOC to get cash out if they still would like to access their equity. So this allows a customer to not use a HELOC and get a 30 year fixed for a lower rate. For a primary home coming in today, 8. 125. Finally, here are 8. 542, which would be much lower rate than a HELOC, so great option. And our investors can use the same program. HELOCs are very rare for investments, so this is a great option. 30 or 50 second mortgage for investment property, get cash out, rates as low as 9. 5. Finally, here are 9. 739. So those are the basic options we go over every day. Let's get into our topic for today, USDA loans. Just like yesterday, our general specialty types of loan or government types of loans, there's all kinds of different special options. When we do our general demo, we want to compare everything apples to apples. So we do a standard 20 percent down, which is not your typical. So Jose will be able to explain all the different tips and tricks that we can do for USDA loans. Since we're going to be going into a deep dive here. So Jose, let's check out the options. We don't get to see every day here. Good morning, everybody. Thank you for joining us for daily mortgage rates live with the mortgage calculator. USDA loans are the option for properties located in rural areas. The purpose of USDA loans is really to help our agricultural workers, right? Those that live in agricultural areas, those that put food on our table, 100 percent LTV. reduced MI and reduced credit score requirements. So let's go ahead and get into our options today. First option here is for your standard USDA 100 percent LTV purchase. And our lowest cost option is 5. 625 with a lender credit of 0. 125. And you can buy that down all the way to 5 percent at a cost of 2. 5 points. Next option here is for our low credit score borrowers. 500 credit score is the minimum credit score option and you're looking at 7. 25 with a lender credit of 0. 25 and you can buy that down to 6. 25 at a cost of 1. 375 points. And now for some outside the box solutions here, our renovation loan at a hundred percent LTV for USDA. This is the one that allows you to either buy that property with condition related items that normally would not be able to close with traditional USDA financing, or just convert the home into your dream home. Cause this does allow you to finance the renovation funds along with the purchase funds. All in one loan and 6.125 is our lowest cost option, and you can buy that down all the way to 5.125 at a cost of 2.5 points. Now, if you really want to have that dream home, haven't been able to find it, this is the way uh, you can, uh, resolve that with A-U-S-D-A one time close purchase. This actually allows you to purchase the land. And build your dream home all with one loan. No need to have a separate construction loan and then refinance into your end loan. You can do that all in one shot. Uh, and for those of you out there, uh, looking at manufactured homes, you can actually do a manufactured home one time closed loan, which actually lets you purchase The manufactured home purchased the land, and then, uh, obviously the installation of the manufactured home on site would be the quote unquote construction phase of the transaction. And 6.75 is your lowest cost option at par, and you can buy that down all the way to 5.125 at a cost of 2.5 points. Uh, USDA, uh, does not allow cash out refinances, right? Its main purpose is to help people buy homes or in this case of a rate and term refinance stay in their home if they need to refinance into a lower rate to make the home payment more affordable. Our lowest cost 5. 625 actually with a little bit of a lender credit and you can buy that down all the way to 5%. at a cost of 2. 5 points. And our last option here is the USDA Streamline Refinance. This is the option that allows you to close on the loan without an appraisal, without any income documentation, but it is a USDA to USDA transaction similar to the FHA Streamline Refinance. 5. 625 is your lowest cost option at a cost, uh, with a lending credit. of 0. 125 and you can buy that down all the way to 5 percent at a cost of 2. 5 points. Amazing USDA options here at the Mortgage Calculator. So definitely look to Mortgage Calculator for all your USDA loans and every other loan. All right. Thank you, Jose. I do not see any questions. So I think we can 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 we do a deep dive into a different loan type. So we'll be back tomorrow with a new loan type. We appreciate everybody tuning in. We'll see you tomorrow 11 a. m. Eastern for the next episode of Daily Race Live with the Mortgage Calculator.