Daily Mortgage Rates LIVE - 10/24/2024 - Limited-Review Condo Loans

In this episode of Daily Mortgage Rates LIVE, we focus on Limited-Review Condo Loans, a specialized financing option designed for buyers looking to purchase condos without going through the full, often complex, condo project review process. Limited-Review Condo Loans streamline the approval process, making it faster and easier for qualified borrowers to secure financing, especially in established, low-risk condo communities.

We’ll cover the eligibility requirements, including how loan-to-value (LTV) ratios and occupancy status influence approval, and highlight the advantages of limited reviews compared to full project reviews. You’ll also learn about potential restrictions and important factors to consider when guiding your clients through this loan option.

Whether you're a loan officer working in a high-demand condo market or simply looking to expand your knowledge, this episode will equip you with the insights and tips needed to confidently navigate Limited-Review Condo Loans and help your clients close deals more efficiently. Tune in for a closer look!

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 Originat

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 24, 2024 • 03:02:22 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 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 the shows, go through our. Actual live rates. And then we do a deep dive into a different topic. So Jose, uh, will have a topic for us here today of limited review condos. So we will go through that here shortly, but first we're going to go ahead and excuse me, we're going to go ahead and pull up today's rates. So let me go ahead and. share my screen here and we will get into it. All right. Okay, so you'll see here we'll start with the 30 year fix conventional. Obviously the loan that most people think about when they think about a mortgage. You'll see here. 6490 is the lowest rate we have here available with the APR of 6. 802. The next version here, uh, the next option here, FHA, a little more lenient on credit and certain factors there. Uh, you'll notice the rate is 5. 624 final APR of 6. 605. So. cheaper APR here on the FHA right now than the conventional. Uh, next up here, we have a 30 year fixed VA loan. Uh, definitely an amazing product here if they qualify, right? This is for active, uh, military or veterans. And you'll see here rates as low as 5. 75 APR 6. 043. So definitely the best option up there if your borrower qualifies. Next up we have the USDA loan. This is only for eligible properties in a USDA designated area. You'll see rates as low as 5. 75, APR 6. 451. Now that wraps up most of the options that most lenders have, but here at the Mortgage Calculator we love all of our special programs and our non QM programs. We have over 5000 programs here in house and starting here with our 30 year fixed non QM all doc primary, right? So, uh, different, uh, qualification here for income. Typically, this is going to be a bank statement loan. You'll see here. We also have options of profit and loss and all kinds of different Options here, you'll notice that the rate is as low as 6.4998. Final a PR 6.809. Now we also have the alt dock for investment property. Again, typically bank statements or 10 99 or p and l. Uh, for the income, you'll see the rates as low as 7% there. Final a P 7.5. Now, uh, you'll see here next, moving on a 30 year fixed conventional as we go through. More investment options here. So 30 year fixed conventional investment, 6. 875 final APR of 7. 211. Now moving on to one of our favorite programs here, which is DSCR. So DSCR. requires no income from the borrower, no employment from the borrower. We're simply going to go based on the debt service coverage ratio of the property, meaning does the, uh, rent cover the expenses, right? That would be a ratio of 1. 0 or higher. So right now, 30 year fixed, uh, DSCR and for an investment property, which they are only for investments, you'll see here. Coming in at 6. 625 final APR 6. 951. And not only is the DSCR cheaper, but it's a much, uh, more streamlined program. So, uh, pretty much a hundred percent of investors would choose the DSCR with a cheaper rate. Much easier to qualify for and much easier loan to get done. This does have a three year prepayment penalty on this option. And if we move here to our DSCR investment property, if we add a five year prepay, you'll see that the rates are as low as 6. 499 final APR is 6. 809. Now you'll see here we also have a DSER option with no prepayment penalty, uh, which is definitely an option, but you're going to see obviously an increase in the rate there. Rates as low as 7. 0 percent final APR 7. 0. Now, some more amazing products we have here are our 30 year fixed second mortgage. So as opposed to doing a home equity line of credit, we can offer an actual 30 year fixed second mortgage to get cash out of people's homes without touching that first mortgage. First mortgage, especially right now. A lot of people got a very low rate, uh, when rates were, you know, the lowest. And, uh, so they may not want to touch that first mortgage and may want to go ahead and do a second mortgage without having a variable rate HELOC, right? So 30 year fixed second mortgage on a primary residence rate is low rates as low as 8 percent final APR, 8. 38%. Four. Now we also have a 30 year fixed second mortgage for an investment property, which is really awesome. Uh, rates as low as 9. 375%. Final APR there is 9. 761. Now we also have, uh, some cool options here for 30, uh, 40 year DSCR investment. Notice it has a three pay, a three year prepayment penalty on it as well, but definitely an amazing option. A 40 year DSCR investment, which is also going to help your DSCR ratio, right? When you're on a 40 year as opposed to a 30 year. And then we also have the 40 year interest only, which again, is going to definitely help your DSCR ratio there with rates as low as 6. 75 percent final APR 6. 821%. So now we're going to go ahead and get into our topic for today, which is limited review condos, which we don't go over here on our regular rates. So I'm going to go ahead and turn it over to Jose here to talk about today's topic of limited review. Good morning, everyone. Thank you for joining us for daily mortgage rates like with the mortgage calculator the limited review condo process Not to be confused with Non warrantable condo loans is a process whereby at a limited loan at a reduced loan to value The condo questionnaire does not have to inquire About the budget, uh, or the finances, uh, which seems to be, uh, a very, uh, complicated matter. Sometimes if the building does not have at least 10 percent of the annual budget and reserves, then it would not be eligible. For, uh, Fannie Mae, Freddie Mac, uh, low down payment financing, uh, and it would not be eligible for Fannie Mae or Freddie Mac financing period, unless you were not to have to ask those questions, which is what the limited review condo process does at a reduced loan to value. Then you do not have to ask about the budget and you do not have to review the budget. So, it is, uh, offered, um, um, 75 percent LTV maximum first mortgage for primary 70 percent LTV maximum LTV for an investment property. And the good thing also, which you'll see in a minute, is that we're also allowed to go up to 90 percent CLTV, which is great for the primary residences where you can add a HELOC to get to 90 percent CLTV, 75 percent on the first, 15 percent HELOC And then 10 percent down payment. So let me go ahead and share the options I have for you today. Our first option here is, uh, the straight purchase 75 percent LTV. So there is not, and this is a real important point I'd like to make, there is not a It is a button that you click for example, to ask for a limited review condo loan that seems to be some confusion. It is just an accepted process of the review. That is the LTV for a primary condo purchase. For example, it's 75 percent or less than it is eligible for a limited condo review and then, um, processing has to, uh, be request the correct condo questionnaire. If you go and you request a full review condo questionnaire and submit that to underwriting, then that's just what you submitted. However, just note that you do have the choice of limited condo review questionnaire at 75 percent or less. So, uh, again, no loan level price adjustment. foregoing limited review condo. 7 percent is our lowest cost option at par and we can buy that down all the way to 6. 375 at a cost of 2. 125 points for our 75 percent LTV limited review condo conventional purchase. Our next option here is our limited review condo conventional investment purchase. So here the LTV does drop to 70%, but again, the same benefits of limited condo review. No questions on the budget. 7. 375 is our lowest cost option with a lender credit of 0. 125. And you can buy that down all the way to 6. 5 percent at a cost of 2. 375 points. Now our next option is a non QM limited review condo loans. Great news is that, uh, non QM does allow limited review condo purchases or loans, excuse me, for primary. And investment properties. However, what I will note is that they follow, um, the more restrictive, uh, Fannie Mae, Florida guidelines, which actually I should, I should have stated here that the guidelines I'm following here are the more restrictive limited review condo. Uh, for Florida, uh, for the rest of the U. S., it's 90 percent LTV, uh, for a primary and 75 percent LTV for an investment. So, I'm showing you the more restrictive, uh, Florida guidelines here, but, uh, non QM does follow the more restrictive Florida guidelines. regardless of the state. So here we are at 6. 999 as our lowest cost option at par, and you can buy that down all the way to 6. 25 percent at a cost of 2. 125 for investment purchase, 70 percent LTV, condo loan. And our last option here, leave the best for last, Next is the HELOC combo purchase that is available in this case. Um, what would hold you back here will be the HELOC guidelines. So we are able to go for a primary purchase. Up to 90% CLTV for the heloc. Uh, so our first mortgage is at 75% LTV, and then we have a HELOC for 15% for A-C-L-T-V of 90. This one, uh, gives us the added benefit of no mortgage insurance at 90% CLTV, only 10% down. So 7.25% is our lowest cost option at par. And you can buy that down all the way to 6.375 at a cost of 2.25 points for our HELOC combo purchase. And here we have our HELOC year, which is, uh,$75,000 heloc. 13.25% is the rate, the payment, excuse me, on that heloc. So 90% CLTV HELOC combo with limited review. Benefits, so look to the mortgage calculator for all your limited review condo loans and non warrantable condos Agency and non QM. All right. Thank you Jose. I don't see any questions here in the chat So I think we can uh wrap it up, but definitely great Info to have, especially if you're in Florida, but just, uh, you know, again, an important point there, if you're going non QM, it's going to go by those guidelines. So be careful of that, regardless of what state you're in. So that was a great point to make. So we'll go ahead and wrap it up then. Appreciate everybody tuning in. Uh, remember we do this at 11 a. m. Eastern every weekday, where we go through our live rates and then do a deep dive into a different topic. So we'll be back tomorrow with a new topic at 11 a. m. Eastern for the next episode of Daily Rates Live with The Mortgage Calculator. Have a great day, everyone.