Daily Mortgage Rates LIVE - 10/21/2024 - ITIN Borrower Loans

In this insightful episode of Daily Mortgage Rates Live, we’re tackling an important yet often overlooked topic in the mortgage world—ITIN Borrower Loans. These loans cater to individuals who lack a Social Security Number but hold an Individual Taxpayer Identification Number (ITIN), offering a critical pathway to homeownership for non-U.S. citizens.

We'll break down everything you need to know about ITIN loans, starting with who qualifies, the documentation needed, and how the application process differs from traditional mortgages. Are you curious about the credit and income requirements? What about the challenges and potential benefits for lenders and borrowers alike? We’ve got it all covered. Whether you're a lender looking to expand your offerings or an ITIN borrower exploring your home loan options, this episode provides essential insights.

Don’t miss this opportunity to learn how ITIN loans can help bridge the gap in the mortgage market and help more people achieve their dreams of owning a home!

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

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 Oct 21, 2024 • 03:01:26 PM: 0:09

So welcome everyone. My name is Kyle Hiersche. I am the COO of The Mortgage Calculator, joined here by our president of Nick Hiersche and our CSO, Jose Gonzalez. We are a lender that specializes in non QM loans and what we do every week. day at 11 a. m. Eastern on this show. Let's go through our actual live rates. Then we do a deep dive into a different loan type. But today's loan topic is going to be I 10 borrower loan. So Jose will take us through some different options for that here shortly. But first we will look at today's actual mortgage rates. So Nick, you are ready. Let's see what the rates are looking like this morning. All right. So as usual, we will check out the rates for this morning. It is just after 11 a. m. Eastern, so all of our standard programs have their initial rate sheets for today. We'll set up a standard scenario and compare the APR across the programs. If you'd like a full itemized loan estimate, for example, the fees that go to the APR, please get with one of our team members, we'd be happy to help you out. For our scenario, as we do every morning, we'll set up a standard setup here, single unit, single family home, a 500, 000 purchase price, 400, 000 loan amount that corresponds to 80 percent loan to value, 20 percent down payment. We use a 760 FICO credit score and an estimated 40 percent debt to income ratio. So with those settings, let's check out the rates today. So the first option that we typically look at is our 30 year fix conventional for a primary home. That's the most common option people think of when they think of a mortgage. Rates today coming in at 6. 124%, final APR 6. 427, about the same as it was last week. And if for any reason our customer doesn't qualify for a standard conventional option, we typically want to compare an FHA option. FHA allows more leniency on credit issues and a much higher overall debt to income ratio, but does require upfront and yearly mortgage insurance. Rates for FHA today coming in at 5. 25, final APR 6. 193. So if our customer qualifies for both, they may want to look at FHA if they're willing to do the monthly mortgage insurance. Our customers that need to use it. Definitely very comparable here to our standard options. And moving on to our VA, VA is only for eligible active service members and vets. If you are eligible, these programs are amazing. It's as low as 5. 5 on the PR 5. 798 with a standard funding fee. So definitely lower than the other options. So our VA eligible borrowers definitely take advantage. And the final standard option here, USDA is only for properties in USDA eligible areas of the country, properties eligible and our customers eligible. These are great options to consider. Today is rated as low as 5. 5, final APR 6. 242 with all the fees included, touch higher than FHA today. Typically it'll be a touch lower, so that should adjust. And it is a touch lower than conventional. So our customers looking in those rural areas, definitely consider the USDA option. And that rounds out the standard options that every banker lender has. And if a customer doesn't qualify, unfortunately, most banks or lenders have to deny them. But that's where we love to start presenting our alternative options, starting with our non QM called DOC or a primary home. So if our customer doesn't qualify with conventional or FHA required documents, two year stack returns, et cetera, needs to use alternative documentation, we can switch to this option, use bank statements, 1099s, P& Ls, asset related options, all kinds of different variations. Rates as low as 6. 25 today for a bank statement option, final APR at 6. 578. So just a touch above conventional, uh, so for our customer to switch from conventional to using alternative docs, almost identical price there, which is amazing. And moving on to our other options for investment properties. First up our non QML doc options. So again, a bank statement or similar rates coming in at 6. 999, final APR there, 7. 415. And we'll compare that to our other investment options. First up is our 30 year fixed conventional option. Remember, there are no government options, so no USDA, for an investment property, but we do have our conventional option coming in today, 6. 8758. Finally, we are 7. 211, which is a little lower than our Altoc option, but definitely not lower than our GSCR option, our favorite loan type for investment properties. No income is needed. No employment information is needed from our borrowers. We simply use the estimated rental income from the property to determine a DSCR ratio. If the estimated rents can cover the estimated expenses, that is a ratio of one or higher. If the ratio is one or higher and there is a three year pre payment added, we have rates as low as 6. 499 today. Final APR 6. 809. Absolutely amazing. Beating conventional by quite a bit today. And we can even add a five year prepayment penalty for some of our options. Rates today coming at 6. 375. Final APR 6. 682. Definitely better than conventional. And our final DSCR option is an option with no prepayment penalty. Rates as low as 7%. Final APR 7. 298. Just a touch above conventional, but I'd still say, um, pretty much 100 percent of investors would prefer a DSCR option, even at much higher costs. And these are almost identical. So pretty amazing there. And the final two options we always want to talk about. are 30 year fixed second mortgage options. So these are alternatives to a HELOC. Many borrowers have a first mortgage that is lower than what you see here. Want to keep that first mortgage in place, but still get access to cash. We can do a cash out with a 30 year fixed second mortgage on a primary home. It's as low as 8%. Final APR 8. 370, much lower rate than a HELOC and obviously fixed as compared to adjustable. And we can do the same thing for investment properties. 30 year fixed second mortgage for investments. Rates as low as 9.375 to get that cash out. Final a PR 9.731. So those are our standard options we go over every morning. But let's go ahead and switch into today's topic where Jose's gonna take us into our I 10 options. So. Uh, when we do our live show, we have a standard, uh, you know, citizen option. These are the standard options for everybody. Uh, Jose will go into the specific options for different types, which we can't necessarily do on the live rate demo. So was I first explained what exactly we're talking about for item borrowers? And then let's check out our. Examples. Good morning, everybody. Thank you for joining us for daily mortgage rates live with the mortgage calculator. And I 10 borrower is a non permanent resident alien that does not have legal status in the U. S. But is living full time in the U. S. And also working full time in the U. S. deriving their income from the U. S. The item borrower for an item borrower loan is also required to have U. S. Based credit. So due to all the U. S. Based Requirements. The I 10 borrower is definitely not a foreign national borrower, even though they both share the fact that neither has legal U. S. status to live permanently in the U. S. So let's go ahead and share the I 10 options that we have today. The I 10 borrower is required to have the I 10 document approved. or the ITIN number in order to be able to qualify for this loan. Let me see if I can make it a little bit bigger for you all there. Our first option here is, uh, the full doc primary purchase for the item borrower, 85 percent LTV is the maximum LTV. 8. 375 is our lowest cost option at a cost of 1. 125 points. And you can buy that down all the way to 7. 875 for our full doc primary purchase with 15 percent down for item borrower. Our next option is for our investment purchase by an ITIN borrower. The LTV does drop here to 80 percent maximum. 7. 499 is our lowest cost option and 6. 499 is our lowest rate option. And now for our next option is our low credit score option for ITIN. 660 is the minimum credit score for this option, the ITIN borrower. 8. 875 is our lowest cost option at 1. 375. And you can buy that down all the way to 7. 999 at a cost of 3. 125. And this is for an investment purchase at 80 percent LTV for our I 10 borrower. And now for some cash out options here, I wanted to go a little bit outside the box here again. Our I 10 bank statement, primary refinance, maximum 80 percent LTV for this option. 7. 999 lowest LTV. Cost option at 1.375 points, and you can buy that down all the way to 7.375 at a cost of 2.5 points. for our primary bank statement option. And now we have our investment bank statement cash out option and great news. We are still at 80 percent LTV, even though we switched over to investment. 7. 999 is our lowest cost option at a cost of 1. 375 points. And you can buy that down all the way to 6. 999 at a cost of 3. 25 points. And our last option here is our low credit score option with a six 60 credit score and great news, we can go to 75% LTV for this I 10 bank statement investment property, cash out refinance. 8.999 is our lowest cost option at a cost of 1.375 points, and you can buy that down all the way to 8.125. at a cost of 3. 375 points for our 660 credit score, 75 percent LTV investment property cash out for your ITIN borrower. So great options here for ITIN borrowers at the mortgage calculator, as well as for nationals, non QM and agency loans. All right. Perfect. Thank you, Jose. I don't see any questions coming in here, but definitely a great programs. And again, not to be confused with foreign national, right? Which are also amazing programs, but just different types. I don't see any questions still. So 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 a different loan type. So we'll see you all tomorrow with a new loan type at 11 a. m. Eastern for the next episode of daily rates, the mortgage calculator.