Daily Mortgage Rates LIVE - 10/07/2024 - Bank Statement Loans

In this episode of "Daily Mortgage Rates LIVE," we uncover the untapped potential of Bank Statement Loans—an unconventional yet powerful financing option for self-employed individuals and business owners.

Tired of traditional loan applications rejecting you due to fluctuating income? Bank Statement Loans could be the answer. Join our expert hosts as they dive deep into how this unique mortgage option works, who can benefit most from it, and the steps to qualify even without a traditional proof of income.

📄 What are Bank Statement Loans, and how do they differ from conventional mortgages?
🏠 Who are they best suited for?
💡 What are the key benefits, and are there any risks to be mindful of?

Discover why more self-employed professionals are turning to this flexible solution to buy their dream homes or refinance existing mortgages.

If you’re a small business owner, freelancer, or simply looking for a creative financing option that works with your income realities, this episode is a must-listen. Tune in to "Daily Mortgage Rates LIVE" and find out if Bank Statement Loans are the key to unlocking your next big opportunity!

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

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 Oct 07, 2024 • 03:04:09 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 actual live mortgage rates Then we do a deep dive into a different loan type. And again, today's loan type is going to be bank statement loans. So we'll turn it over to Jose here in a little bit to go over those. But first let's talk about the rates for today. So Nick, if you're ready, let's go ahead and pull up today's rates. All right. So not so great news. The last, uh, few days for rates, but, uh, still at one year lows here. So we will compare all the programs. Today is Monday. October 7th, just after 11 a. m. So all of our standard programs have their initial rate sheets for today. And we'll compare the APR across programs. If you'd like a full breakdown and itemized loan estimate that 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 set up a standard scenario, single family home, 500, 000 purchase, 400, 000 loan amount, corresponds to 80 percent loan, 20 percent down payment. And we just estimated at 760 FICO credit score and an estimated 40 percent debt to income ratio. So with those settings, let me go ahead and share my screen here and check out the rates for today. So first up is our 30 year fix conventional for a primary home. This is the most common option people think of when they think of a mortgage rates coming in today at 6. 00 final APR 6. 324 with all of the fees included. Okay. And if for any reason our customer doesn't qualify for a conventional option, you typically want to quote an FHA option to compare. FHA allows more leniency on credit issues and a higher overall debt to income ratio, but it does require upfront and yearly mortgage insurance. Rates today, 5. 25. Final APR with all the fees and mortgage insurance, 6. 145. So notice when our customer qualifies for both, they may want to consider FHA, it could be a touch cheaper, but does require that yearly mortgage insurance. And if our customer needs to use FHA, definitely a great option. Moving on to our VA for our eligible service members and veterans. If you are eligible, these programs are amazing. Rates as low as 5.25, final A PR 5.542 with a standard funding fee here. And when we compare across the other programs, VA's obviously going to be the best option. Much lower overall. A PR, definitely a benefit for. Our veterans and service members. And the final option that every banker, lender has is USDA, only for properties in the rural areas of the country, USDA, eligible areas. If the property's eligible and our borrower's eligible, this is a great option to compare rates today, 5.25, final a PR with all the fees, 5.984. So we compare that to FHA. It will be a touch cheaper for our customers shopping in those areas. So definitely look to USDA for that. And obviously a touch cheaper than conventional as well. And that rounds up the standard options that every bank or lender has. But if our customer doesn't qualify with any of the four standard options, many banks or lenders have to deny them. That's where we love to come in with our 5, 000 additional loan programs. First up, our 30 year fixed non QM option for primary home. So if our borrower doesn't qualify for conventional or FHA using tax returns, et cetera, standard documentation. We can switch to alternative docs such as bank statements, our topic for today, uh, 1099s, asset related, PNLs, all kinds of different options. Today's option for a bank statement comes in at 6. 125, final IPR 6. 450. Very close to conventional today, almost identical, absolutely amazing. Our customers just switched to alternative docs without much more cost there. So great option. And we have tons of options for investment properties. So, our non QM AltDoc option for an investment property comes in today 6. 625 for a bank statement option. Final APR 6. 964 and we'll compare that to the other investment property options here. First up is our conventional option. There are no government options, so no USDA, FHA, or VA, but conventional comes in 6. 5 rate. Final APR 6. 825. And we'll compare that to our favorite option, our DSCR, no income or employment information needed from a borrower. We simply use the estimated rents from the appraisal to determine a DSCR ratio. If the estimated rents are greater than the estimated expenses, That's a ratio of one or higher AKA. The property will cash flow, which is preferred, and with a three year prepayment penalty, which is standard rates today coming in 6.375, file a P 6.682 beating conventional. That's amazing. And we can even add a five year prepayment penalty to some options. Rates as oh 6.125 IAPR, 6.45, uh, 4 2 5, which beats conventional as well. And the final DSCR we present on this show is our no prepayment penalty option, which some states don't allow. Rates come today, 6. 65. Finally PR, 6. 964. So a touch above conventional. I still say a hundred percent of investors prefer DSCR to conventional, even at a higher cost. So this is a great option, but if you can add a prepayment penalty, the three and five years are even better. And our final options we go through every day on the live demo, our new programs are 30 year fixed second mortgages. These are alternative to HELOCs, which is typically the only option for our customer to get a second mortgage and not have to adjust their first mortgage or refinance their first mortgage because they have lower rates than what we can see today. So to get cash out still out of the property without using a HELOC, we can use a fixed rate second mortgage for a primary home, which is those 8. 499, much lower than HELOC final APR 8. 943. And our investors can use the same option. He locks are very rare for investment properties. So this 30th fixed second mortgage is great. Rate as low as 9. 375 final APR 9. 716. And these are both non QM programs, so we can use bank statements, 1099s, asset related, etc. Let's switch into today's topic. So since we do our live demo, we have thousands of programs and options and variations under these large categories. So thankfully, Jose will go through our favorite non QM alt. category of bank statements, the most popular, uh, and show some of these specific options since we only see one option every day on the live demo. Now, there are all kinds of variations. And things to consider when we're going through these options. So Jose, let's check out our best bank statement options today. Good morning, everybody. Thank you for joining us for Daily Mortgage Race Live with the Mortgage Calculator. Bank statement loans are for our self employed borrowers. We recently went over the 1099 borrower loans. Remember those? That those let us use 90 percent of the face value of the 1099. Uh, bank statement loans are a little bit different. There is an expense factor involved. It could be anywhere from 20%, meaning you will receive 80 percent of the deposits as income, and the expense factor could go as high as 60, 70, and even 80%, depending on if it's a business that has a business model with a lot of overhead, a lot of employees, a lot of fixed expenses, a lot of machinery. That business would obviously have a higher expense factor and you would be able to attain less of the deposits as income to our options today for bank statement options for primary purchases and investment properties. As with all non QM loans, maximum loan to value is 90%. So the minimum down payment is 10 percent for our primary option here. Lowest cost option is 8. 25 at par, and you can buy that down all the way to 7. 5 percent for our 10 percent down primary purchase option using bank statements for an investment property purchase. 15 percent down is the minimum down payment. So you will be at 85 percent loan to value. 8. 374 is our lowest cost option, and you can buy that down all the way to 6. 999 percent for our 85 percent LTV investment purchase using bank statements. And now for our lower credit score borrowers, 600 is the minimum credit score for this option. Uh, 80 percent LTV is still possible even with only a 600 credit score, which is amazing. 10. 625 is our lowest cost option at par and you can buy that down all the way to 8. 999 at a cost of 3. 375 points for our 600 credit score, 20 percent down investment property. That is possible also for primary residences. Also 80%. And now for some cash out options, 80% LTV max. Here we are looking at, let's give you the lowest cost option is 7.625 at par, and you can buy that down all the way to 6.499 and a cost of 2.5 points and our investment. Cash out refinance, 80 percent LTV. Our lowest cost option is 7. 625 at par. And you can buy that down all the way to 6. 25. Wow! At a cost of 3. 25 points. And our last option here is our low credit score option. Again, minimum 600 credit score for this option. Uh, 75 percent LTV is the maximum at this credit score for the cash out refi and our lowest cost option is 10. 875 at par and you can Write that down all the way to 9. 2. We have load with a 600 credit score. Many great options here for our bank statement loan. So please do look to the mortgage calculator for all of your bank statements. All right. I do not see any questions. So I think we'll go ahead and wrap it up. But again, probably the most, uh, well, definitely the most popular non QM loan out there. So definitely for loan officers, something to make sure you're very familiar with because it's going to come up, but thank you everybody for tuning in. Remember, Oh, hold on. We do have a, uh, question that just came in. Question is for the LTV at 90 percent for the primary purchases. There are minimum credits, uh, depending on the investor you're looking at anywhere from 700 to a seven 20. Definitely 700 minimum, you're not going to have anything below a 700 reach 90 percent LTV. All right. Okay, well, let's go ahead and wrap it up then remember that we do this show at 11am Eastern every weekday where we go through our live rates and then do it next. So we'll be back tomorrow with a new loan type. We'll see you tomorrow 11am Eastern for the next episode of daily rates live with the mortgage calculator.