Daily Mortgage Rates LIVE - 09/26/2024 - ITIN Loans

In this episode of Daily Mortgage Rates Live, we shine a light on a unique mortgage solution—ITIN Loans. If you don’t have a Social Security Number but have an Individual Taxpayer Identification Number (ITIN), this episode is for you! We’ll explain how ITIN loans work, who qualifies, and why they’re a great option for non-U.S. citizens or undocumented immigrants looking to achieve their dream of homeownership. You’ll learn about the documentation required, the benefits of this loan type, and how you can qualify even without a traditional credit history.

If you’ve been told homeownership is out of reach, think again! Tune in and find out how an ITIN loan can turn your dreams into reality.


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 Programs, No Ratio CDFI Loan Programs, DSCR Investor Mortgages, Commercial Mortgages, Fix and Flip Mortgages and thousands more!

Our

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 26, 2024 • 03:02:57 PM: 0:09

So welcome everyone. My name is Kyle Hiersche. I'm the COO of the Mortgage Calculator, joined here by our president at 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. And then we do a deep dive into a different loan type. Today's loan type is going to be mortgage. I 10 loans for borrowers with I 10 numbers. So, uh, we'll get into that here shortly. But first, let's go ahead and check out the rates. 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, so still at uh, one, one and a half year lows, which is great. Uh, did tick up a little bit from last week, but we'll check out the rates for today. It is September 26th, just after 11 a. m. Eastern. So all of our standard programs have their initial rate sheets here. We'll compare the APR across the programs. If you'd like a full breakdown, uh, itemized loan estimate, itemizes all the fees that go into the APR, please get with our team members. They'd be happy to send that over. For the demo, as we do every day, we'll set up a standard scenario, a single family home, 500, 000 purchase price, 400, 000 loan amount corresponds to 80 percent loan to value 20 percent down payment is estimated 760 credit score and an estimated 40 percent debt to income ratio. So let's check out the rates for today. So first up, our 30 year fixed conventional option for primary, that's the most common option people think of when they think of a mortgage rates today coming in 5. 75 on IPR 6. 067 just ticked up a touch above six there. We've been under six for a while, but we're still at one year lows. Now, if for any reason, our customer doesn't qualify for a conventional option. Typically, we want to present an FHA option. FHA allows more dependency on credit issues and a higher debt to income ratio overall, but does require upfront and yearly mortgage insurance. FHA coming in today, 4. 99 rate, kind of like your 5. 924. So if our customer qualifies for both, they may consider FHA if they're willing to do the mortgage insurance. But, uh, it's very comparable cost here. It's a touch cheaper, uh, overall and a great option for our customers that need to use a FHA. Moving on to our VA for eligible vets and active service members. These are great options. Rates today, 5. 125. Final APR, the standard funding fee here, 5. 402. So when we compare across the programs, a VA is definitely going to be the best option for our borrowers that are eligible. Cause it's going to have the lowest APR there. And the final option for our standard options, USDA is only eligible for our properties that are in USDA eligible areas, the rural areas of the country. If the property is eligible, these are great options to consider. Rates today coming at 4. 99. I like are the fees included 5. 716. So if our customers are shopping in those areas, they're going to be comparing to an FHA is going to be a touch cheaper and touch cheaper than conventional too. So great option for those areas. That rounds out our standard options that every bank or lender has, and if our customer doesn't qualify, unfortunately, our other banks may have to deny them. That's where we have 5, 000 other programs. First up, coming in today with our non QM alt doc option with some good movement. So, we'd love to see when non QM moves down and the conventional is, uh, moved up a tick. So, if our customer doesn't qualify with our conventional option, needs to switch to alt docs, such as bank statements, 1099s. Uh asset related pnl some of the other topics we did this week rates today coming in 5. 875 absolutely amazing final apr 6. 193 Almost identical to conventional. It's amazing when we can use our alt doc options for nearly identical price And moving on to investment properties tons of options for investment properties. So for alt doc is our first option So bank statements again 1099s asset related Coming in today 6. 58 final apr 6. 823 And we'll compare that to the other investment property options. Conventional is coming in today. 6. 25 rate by my PR 6. 581. So this is such cheaper than our all doc, but not cheaper than our favorite options. DSCR coming in smoking again today and the five year coming in even more smoking. DSCR stands for debt service coverage ratio, no income information needed, no employment information from the borrower. 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. That's a ratio of one or higher, which is preferred. And for our first option here with our three year prepayment penalty, squeaking out, uh, by conventional a tad there, 6. 125 rate. Finally, pay our 6. 425, which is amazing. And we can sweeten the deal with a five year prepay. Coming in today, 5. 75. Final APR, 6. 065. Absolutely amazing. And blowing conventional out of the water there for our DSCR with a five year prepay. And not much change in the no prepayment penalty option, but we do have that. Rates today, 6. 5. Final APR, 6. 823. So that's going to be a touch more expensive than the conventional, which is typical. I would still say a hundred percent of investors would prefer a DSCR when the costs are very comparable here. And if you can add a prepayment penalty definitely sweetens the deal and the final two options we have are Second mortgages typically our customers that have a low rate first mortgage lower than the rates we're seeing today I want to keep that first mortgage, but still want to get cash out typically a he locks the most common option But now we have our 30 year fixed second mortgages for our primary borrowers to give Cash out, 8. 125. Final APR, 8. 542. Definitely a great option, lower rates than a HELOC, and obviously not adjustable like a HELOC. And same for our investors, can get cash out without touching that first mortgage. Rates as low as 9. 25. Final APR, 9. 557. Some great options for our investors there, as HELOCs are very rare for them as well. Let me go ahead and switch screens again. Get into our topic for today. So I 10 is a citizenship type. So when we do our live rates, we don't go through the different citizenship types. We love to have options for all different statuses. So Jose, let's first talk about status because that's usually the most confusing part of this. Um, and then let's talk about the options that we have for the true I 10s, which may be different than what people think they are. Yes. Good morning, everybody. Thank you for joining us for Daily Mortgage Rates Live with The Mortgage Calculator. So if we go to, I guess I would call it our status totem pole, right? Uh, at the top of the totem pole, you have the, uh, full us citizen, um, either naturalized citizen or born here. You're still a citizen below that you have the permanent resident aliens, right? They have their green card. allowed to permanently reside in the U. S., do not have their citizenship yet, but, um, able to qualify for all the same programs that U. S. citizens can qualify for. And then you have your non permanent resident aliens, right? Non permanent resident aliens are, um, Are individuals living in the U. S. Uh, typically the now here's where we have a distinction, right? Because the non permanent resident alien, you're basically going to be able to put him in two different categories when you're trying to structure your loans. One is an actual non permanent resident alien that is residing legally In the United States has their status to be here through, uh, some type of visa or some type of asylum from immigration, but they are legally residing in the U S and they have an employment authorization document. Be it a work permit. Maybe they have an E2 visa that allows them to own a business and manage their business here, which would be working. And then we have our ITIN borrowers right now. ITIN stands for Individual Taxpayer Identification Number. Our ITIN borrower is residing full time in the United States, working Or should I say deriving their income solely from the United States, but they do not have legal status like a typical non permanent resident alien does. However, when you are structuring your loan and looking for options in the pricing engines, You would put your borrower in the non permanent resident alien category to be able to get your pricing options, but to be aware that they are, they are an I 10 borrower simply means they have the I 10 document in order to be able to file tax returns. Um, so there are, Multiple income streams for the item borrower from full dock 1099. Um, bank statement, P and L and even DSCR. But just be aware. W two full dock is probably not the option that would be applicable for your borrower because to be a W two borrower. They have to have a social security number for the W 2 document to be able to be generated because that is taxes that are being deducted for, uh, stuff like social security, federal income tax, and Medicare, since they don't have their full status here as either as a non permanent resident alien, nor as a permanent resident, they do not have a social security number. They're going to have an. i10. So let's get into our options here now, now that we understand what we're dealing with. Our first option here is for a full dock i10 primary purchase. 80 percent LTV is the highest LTV, so that's 20 percent down. And we're looking at 8. 375, excuse me, 8. 375. at par and you can buy that down all the way to 7. 124 which is a cost of 2. 5 points. Our next option is our investment purchase. Now the other one was a primary. This one is investment also 80 percent LTV which is great news. This one is full dock. And you're looking at 8.49, our lowest cost option at par, and you can buy that down all the way to 6.49 at a cost of 3.5 points. Now, here's where it gets interesting for the I 10 borrowers. Now we have an IT 10 bank statement investment purchase, and again, great news, 80% LTV maximum LTV for this option. 8.75 is our lowest cost option at a cost of 0.25 points, and you can buy that down all the way to 6.75% at a cost of 3.375 points Now. Here's where it gets really interesting. We actually have an ITIN DSCR purchase option, 80 percent LTV. Yes, folks. That is not a typo. I triple confirmed that 80 percent LTV for our ITIN borrower. 8. 624 is our lowest cost option at par. And you can buy that down all the way down to 7. 374. Absolutely amazing. And now for some cash out options. Hold up a second here. All right. We're frozen there for a second. So some cash out options here. 75 percent LTV is our maximum LTV for this option. 8. 75 is our lowest cost option. And we can buy this down all the way to 6. 625. Absolutely amazing. And saving the best for last, our ITIN DSCR investment cash out at 70 percent LTV, which is the maximum LTV for our ITIN borrower using DSCR. You're looking at 7. 875, our lowest cost option at par, and you're going to buy that down all the way to an astounding 6. 25 percent at a cost of 3. 225 points. So we're definitely seeing the I 10, um, Secondary market open up here, especially for DSCR. Amazing. High LTV. 80 percent was not available previously for an ITIN borrower. So definitely look to the mortgage calculator for all your ITIN borrower loans. All right. I do not see any questions. Definitely great programs there. So no questions. So I think we'll go ahead and wrap it up. Remember that we do this show at 11 a. m. Eastern every weekday where we go through our live rates and then do a deep dive into different loan types. We'll have a new loan type for you tomorrow. Thank you everybody for tuning in. We'll see you tomorrow at 11 a. m. Eastern for the next episode of Daily Rates Live with the Mortgage Calculator.