Daily Mortgage Rates LIVE - 10/23/2024 - Bank Statement Loans

In this episode of Daily Mortgage Rates Live, we take a deep dive into Bank Statement Loans, a flexible mortgage option designed for self-employed individuals, freelancers, and those with non-traditional income streams. If you’ve ever struggled with qualifying for a mortgage because your tax returns don’t reflect your true income, this episode is for you!

We’ll walk through how Bank Statement Loans work, explaining how lenders use personal or business bank statements instead of traditional income verification methods like W-2s or tax returns. You’ll learn who qualifies for these loans, what types of income and business documentation are required, and how lenders assess risk for borrowers who may have fluctuating earnings.

Whether you’re a business owner looking for an alternative way to secure financing or a lender eager to tap into the growing market of self-employed borrowers, this episode offers valuable insights on how Bank Statement Loans can unlock new possibilities for homeownership.

Tune in to explore how this loan option is reshaping the mortgage landscape and helping more people achieve their dreams of owning a home, even without the traditional income documentation!

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

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 23, 2024 • 03:01:32 PM: 0:09

All right. So, welcome everyone. My name is Kyle Hiersche. I'm the CSO Jose Gonzalez. We are a lender that specializes in non QM loans and what we do every morning on the show at 11 a. m. Eastern is go through our actual mortgages. mortgage rates. And then we do a deep dive into a different loan type. And today's loan type, we're very familiar with because we specialize in non QM loans. And this is probably the most popular non QM loan out there, which is bank statement loan. So I was able to take us through some examples of those here shortly, but first let's see what the other rates are looking like. So Nick, if you are ready, let's go ahead and pull up today's rates. All right. So we will check out today's rates. It is October 23rd, just after 11 a. m. Eastern. So all of our standard rate programs have their initial rate sheets for today. We'll set up a scenario to compare across the program to compare the APR. 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 over the loan estimate. For the demo today, as we do every day, we'll set up a basic scenario, a single unit, single family home, 500, 000 purchase price. 400, 000 loan amount that corresponds to 80 percent loan, 20 percent down payment. And we use an estimated 760 FICO credit score and an estimated 40 percent debt to income ratio with those settings. Let's check out today's rates. So first up here is our 30 year fixed conventional for primary home. That's the most common option people think of when they think of a mortgage rates today coming in at 6. 375 rate. Finally, PR 6. 697. And if for any reason our customer doesn't qualify for a 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. Rate for FHA coming in today, 5. 5 rate. Finally, PR with all the fees and mortgage insurance, 6. 477. So if our customer qualifies for both, they may consider FHA if they're willing to do the mortgage insurance. And our customers that need FHA, definitely a good option, very comparable. And our VA options only for eligible active service members and veterans. If you are eligible, these programs are definitely the best. You see here rates as low as 5. 625. Finally, PR with a standard funding fee 5. 939. So definitely lower than an FHA or conventional example for this scenario. So our vets and service members should definitely take advantage of those programs. And our final program that every banker lender has, USDA, but that's only for properties in USDA eligible areas of the country. That's the rural areas. If the property is eligible and the borrower is eligible, these are great options to check out. Rates as low as 5. 625. Final IPR with all fees, 6. 383. So it's a touch lower than FHA, which is typical. So our customers that look In these rural areas, definitely compared to FHA, typically going to be a touch cheaper and a touch cheaper than conventional. So great option for those rural properties. And that rounds out all the standard options that any bank or lender has. But if our customer doesn't qualify, many banks or lenders will deny them. That's where we love to help out with our 5, 000 additional options, starting with our 30 year fixed. Non QM Alt Doc options for our primary home. So if our customer doesn't qualify for any of our other primary programs like conventional or FHA using tax returns and standard docs, we can switch to using alternative docs such as our topic for today, uh, bank statement loans. We can also use, uh, P& L statements, 1099s, asset related, all kinds of different options. But our bank statement options today coming in at 6. 375, final APR 6. 707, which is actually almost identical to conventional. So absolutely amazing. Non QM is coming in at almost identical price to conventional today. And we have tons of other options for investment properties here, starting with our non QM alt block options. So again, bank statement or similar. Coming in today rates as low as 7 percent final APR 7. 350 and we'll compare that to our other investment options. Remember there are no government options for investment properties so no USDA FHA or VA programs but we do have conventional. Conventional comes in today 6. 875 rate final APR 7. 211 and that's still a touch lower than our alt doc but not better than our favorite options our DSCR loan options. DSCR stands for debt to service coverage ratio, no income information needed, no employment information needed. We simply use the estimated rents from the appraisal to determine a DSCR ratio. The estimated rents can cover the estimated expenses, aka the property cash flows every month. That's a ratio of one or higher, which is preferred. And this option shows our three year prepayment penalty option, which is the most common. Rates as low as 6. 499 today, final APR 6. 835, which is better than conventional, which is amazing. Okay. And we can add a five year prepayment penalty to sweeten the deal even more, rates as low as 6. 375, final APR there, 6. 707. And our final DSCR option, even though we have thousands of combinations, the standard option here with no prepayment penalty, as some states don't allow it, comes in today at 7 percent rate, final APR 7. 350, just a touch above conventional to do a no prepayment penalty option. So tons of options there and thousands of other variations as well. And our last two options definitely popular these days as many of our customers have lower rates than what we're just looking at here on their mortgage. Don't want to necessarily change that mortgage they have in place but need to get some cash out of their property no problem. You can use a HELOC which is the traditional option or the preferred option now is our 30 year fixed second mortgage options or primary home. Rates come in today at 8% final pr, 8.370 lower rates than a heloc. And fixed rates as compared to a HELOC is adjustable. So definitely cool option to consider. And the same program for our investment properties comes in today, 9.375. Rate to get cash out. Final PR there, 9.761. So those are our standard options. We check out every day. Let's go ahead and. Switch into today's topic on bank statement loans. So typically bank statement is the most common non qm option So that's the option we typically see in our library demo But jose will break down all the different variations We have as there's thousands of different combinations once we get into the bank statement option So jose, what do we have for them today? Good morning, everybody Thank you for joining us for daily mortgage resale with the mortgage calculator Bank statement loans are the preferred option, uh, preferred non QM option for our self employed borrowers. It is a great solution. It is a solution where the borrower that's making 3, 000 a month on tax returns is making 30, 000 a month using bank statements and definitely qualifies for the home that they are shopping for. We saw a spike in bank statement loans as the interest rate started inching up in the beginning of 2022 and it now makes up. the largest segment of non QM origination. So let's get into these amazing bank statement options that we have today. Maximum LTV for any of our non QM options is always 90 percent never any mortgage insurance on any non QM products regardless of the loan to value. So this first option here we have is for a primary purchase with only 10 percent down. Our lowest cost option is 8. 625 percent at par. Then you can buy that down. All the way to 7.75% at a cost of 2.375 points. Our next option is the maximum LTV option for an investment purchase using bank statements. This is amazing because we are at 85% loan to value only using the last 12 months bank statements to qualify the borrower, 7.875 is our lowest cost option. At a cost of 1. 375 points. And we can buy that down all the way to 6. 999 at a cost of 3. 125 points. And for our lower credit score borrowers, we do have bank statement options all the way down to a 600 credit score. That is correct. That is not a typo. 80 percent LTV is the maximum LTV for this option. This is available for both investment and primary purchases. I'm sharing with you today, the investment property option at 80 percent LTV for 600 credit score borrower, 10. 999. Is our lowest cost option at par. And you can buy that down all the way to 9. 499 at a cost of 3. 125 points. And now for our cash out options, 80 percent LTV is our maximum LTV for bank statement cash out refinance options. Uh, this is our primary option. For our primary residence cash out refi and our lowest cost option is 7. 999 with a lender credit of a quarter point. That's nice to see. And we can buy that down all the way to 6. 875 at a cost of 2. 5 points for our primary cash out refi at 80%. using bank statements. And now our investment option. Great news. Investment cash out refi is also maximum 80 percent loan to value, lowest cost option 7. 999 at a quarter point cost. And you can buy that down all the way to an amazingly low 6. 625%. At a cost of three points for bank statement investment cash out refi at 80 percent loan to value. And our last option here is for our lower credit score borrowers. Again, 600 credit score is our minimum credit score for this option. 75 percent LTV is the maximum LTV. For this credit tier and our lowest cost option, 10.999 at par, and you can buy that down all the way to 9.499 for our cash out refi for an investment property with a 600 credit score at 75% LTV. So great bank statement options here at the mortgage calculator. And should your bank statement loan have any issues, remember. The profit and loss loan is an amazing workaround and do not forget 1099s for your realtors and other borrowers that receive 1099s. All right, I don't see any questions, but just to touch on to, uh, Jose, so you can combine bank statements with other forms of income as well? Absolutely. Um, I'm about to close one right now where we are combining W 2 income with bank statements. No need for tax returns. No need for tax transcripts either. We can actually combine multiple income streams. We can actually use bank statements 1099s and P& L and W 2. If your borrower has all those separate company streams, and I think I also recently, uh, closed one also that had three income streams. So that is very unique, uh, something that our, um, that our borrowers may not be aware of. And some MLOs out there may not be aware of, but if you are on the mortgage calculator team, we definitely keep you posted on all these great options. All right still don't see any questions. So we'll go ahead and wrap it up Remember everybody 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 Uh, thank you everybody for tuning in. We'll see you tomorrow 11 a. m Eastern for the next episode of daily rates live with the mortgage calculator. Have a great day everyone