💼 Daily Mortgage Rates LIVE 10/31/25: Non-QM Loans for Borrowers

Welcome to Daily Mortgage Rates LIVE! Today, we’re focusing on Non-QM Loans for self-employed borrowers. If you’re a freelancer, entrepreneur, or small business owner, traditional loans can be tricky—Non-QM Loans offer flexible solutions to help you achieve your homeownership goals.

We break down how these loans work, who they’re for, current market trends, and tips to strengthen your financial profile for approval. Whether buying, investing, or refinancing, this episode gives practical insights to navigate today’s mortgage landscape with confidence.

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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

So thanks, everyone, for joining us. My name is Nick Hiersche. I'm the president of the mortgage calculator. We are a lender that is licensed in 35 states as a lender or mortgage broker. In order to give our customers the best access to all the different programs. Of course, we have all the conventional, FHA, VA, all the standard stuff that you're used to, but one of our favorite topics are our non-QM loan program. So that's what we'll be going over today.

So first, we will get into the general rates. So let me go ahead and switch my screens, and we'll check out the market today. So first off, I wanna pull up here as the ten year treasury. So this is typically the best indicator of mortgage rates, especially if you're not, into sophisticated, mortgage rate and MPS trading. This generally tracks with mortgage rates.

So, as we went over, earlier this week, there was a big announcement with Fed. Typically, there was probably are not going to be much movement there. You can see the markets were kind of priced in earlier this week. And then when that announcement happened, we actually saw rates rise. So rates are actually a little bit higher than they were earlier this week, just because of a little bit of uncertainty in the Fed's announcement caused a little bit of a reaction that maybe, they were mispriced.

Right? So the rates went up a little bit and we'll see that our mortgage rates went up just a touch as well. Also, that sounds happens when, there's a little bit of ambiguity or a little bit of unsureness in some of the statements there from the Fed. So that's why we saw that happen. Just wanted to pull that up real quick.

Let's get into today's actual rates. So it is just after twelve eastern, twelve noon. We have all of our general rate sheets here live from all of our partners. So these are our prices, our rates today. So these are all of our estimates with the following assumptions.

So this is a standard single family home, 500,000 purchase, 300,000 loan amount corresponds to 60 percent loan to value, seven sixty credit score, and 40% debt to income ratio. That way we can compare apples to apples across all the programs evenly. So obviously, we can do the maximum, amounts on all the different programs, but this allows us to compare across the different platforms. So here we have our conventional primary first up here on the top left, standard thirty year fixed loan most people used to, Fannie Mae or Freddie Mac insured loan. Rates coming in today at 5.875, so a touch higher than the last show.

Finally, PR 6.135 there. And you see the next option is FHA, our topic earlier this week, coming in today at 5.375 rate. Finally, PR 6.238 there with all of the upfront and monthly mortgage insurance that is required for FHA. And over here for our VA eligible borrowers and active service members and of course surviving spouses, we have our VA eligible programs and the rates come in today for VA at 5.25 and the final APR are much lower there than you see when you compare the FHA at 5.512. That's because VA definitely has some benefits for our eligible borrowers.

A little bit lighter on the fees there for our eligible borrowers. And now let's scroll down a little bit here to our USDA options. So for properties in USDA eligible areas, specifically the rural areas of the country, Properties will definitely look at these programs. Standard thirty year fixed option for USDA comes in today 5.125 rate, finally PR 5.779 with all the different fees there involved in USDA. And now we're going into our non so non QM means not insured by Fannie Mae or Freddie Mac.

So these are unique programs and they allow us to use different income types. So we can do full doc traditional tax returns, but we also have options for bank statements, ten ninety nine P and L's, and that's what we're going to get into today. But this is our best option today coming in for a standard thirty year fixed non QM doc option, 5.875 rate. Final APR, 6.45. So you see very comparable there to a conventional primary.

So that's amazing when our non QM is very comparable to conventional. And our non QM alt doc for an investment property coming in today, thirty year fixed at 6% rate. Finally PR you see there 6.321. And we're gonna compare that with our conventional investment, coming in at six as well, 6% rate flat, finally PR 6.311. So again, just a touch cheaper for conventional, definitely great when our non QM options are almost identical to our conventional options.

And moving on to our DSCR, stands for Debt Service Coverage Ratio. These are some of our favorite loans for investors. No income or employment needed. Simply use estimated rents from the property in order to underwrite the loan. And this is a standard three year prepayment penalty option which is typical for DSCR investor programs.

Let me move it up a little bit. I can see rates coming in today, an amazing 6% flat rate, final APR 6.284 with all the fees included there. So amazing option for our investors. Very comparable to, conventional. It's actually a touch cheaper than conventional because we're able to add the prepay.

Conventional did not allow us to add the prepay. So it's an amazing day when DSCR is cheaper than conventional, all talking all the options. So, today is a great day for DSCR for our team and for any of our investors out there watching. And our DSCR with a five year prepay makes pricing even better. You see here rates as low as 5.875, absolutely amazing.

Finally, PR coming in at 6.157, and that's beating, both conventional and non QM options for the property substantially. So when we're able to add that five year prepaid, we can make it even better. So rates on the DSCR are amazing today. Now we have a few more options here, but I wanna get into our topic for today. Of course, keep scrolling down there on our live rates, check out all our different unique options.

But let's go into our deep dive today on our non q m options. So what I like to do is pull up an example property here. So first off, I was looking just in my area. So again, I I'm here in Florida, Fort Lauderdale area. So this is a a home that's up for sale.

Looked like a nice home waterfront. Definitely popped up as soon as I searched. A waterfront home. So great option here for our borrowers. And typically, this might be out of reach of our conventional borrowers.

That's why I wanted to choose one with a little bit more higher price. Conventional mortgage limits do come up, but if we wanna put a very low down payment, we could not use conventional on this option. Fort Lauderdale is not a high cost area. Some of the country areas of the country are. Oh, this is not so this would not be one where we could do a 5% or 3% down conventional loan.

We would have to use an alternative. So that's where our non QM option sell out. So first off, we'll get into our non QM full dock option here. So this is the lowest down payment we could do, 10% down payment. This is for this exact home, at the purchase price.

And our options for non QM include no PMI required. So no private mortgage insurance here on this. So it does not increase, the pricing there. So the rates what you see here is pretty much exactly what you get. You all you gotta consider when you're doing a conventional loan or a loan or some of these other loans that have monthly mortgage insurance, you need to price that in.

Fortunately, for non QM, we're able to compare apples to apples as there is never any PMI for non QM loans. And you see here our lowest rate option 6.75 has a little bit of discount points there 2.5, but we do even have options, to go to a 7.625 rate at having a lender credit included to help us with our closing costs. And this 10% down is the lowest down payment for any non QM options. So, this shows the 10% down payment some of the other details of the loan here. So this is a great option for our borrowers, that maybe need to get a property like this example that are out of limits of the conventional loans and of course FHA loans as well, and they need to use a jumbo or a non QM option.

So jumbos are just kind of another way to say non QM as well. In this case, we're using full docs to the tax returns, w twos, whatever we have. Now where NonQM really starts, to give us some very unique options is when we are working with our self employed borrowers. So our next option is going to be for our self employed borrowers to use twelve months of their personal bank statements, and we can still do the 10% down option for that exact property. So you see here the, pricing goes up a little bit because we're using only bank statements.

We're not using any tax returns of any kind. We're simply using the bank statements to estimate the income. And our lowest rate option, 7.25, we do 10% down using bank statements. You see here at a cost of 2.225, and we have options to, get the rates to 8% and lower that cost to the par rate zero cost right there and all the options in between. So there's a little bit more cost here to use only bank statements, but an amazing option for our borrowers that are self employed.

Can't qualify with their tax return documentation. We can just use their last 12 bank statements for this option and still get that amazing 10% down on this beautiful property. Now another option for our self employed borrowers is to use not even have to use 12 bank statements, simply use a p and l statement from our accountant. So in this case, we're using a p and l only. This is a one year p and l.

So just a p and l that covers the last twelve months and we can still do 10% down payment. Now p and l options, oftentimes don't allow us to go up to 90% LTV or 10% down. A lot of times they require 15% down because they are a little more risky since we're only getting literally a sometimes a single page document of a p and l in order to underwrite the loan. And we often need to supplement that with a little bit more information, often to make statements as well, but this is an amazing option. You see the cost is a little bit higher.

So 9.125 rates and final discount points at 2.5 because this is definitely more risky option for our partners here, but it allows us to still do 10% down. Now Now if we put 20% down or 15% down, we'll get much better rates here for our p and l option. But this is pretty amazing that we have p and l options. Again, this this went away a few years ago, to do 10% down with the p and l, and now there are a few options that are back, which is amazing for our borrowers that need to use that option. And our final option we wanna go over is an option if our borrowers, don't even have a p and l, or bank statements that work.

We could even go with ten ninety nine only. So if they're a contractor of some time, working for, typically, one or a couple different places and they have just a few ten ninety nines, this is a great option where we can just take 90% of what's listed on that ten ninety nine typically and use that as our income. And again, this is a little more risky option. So a little bit higher rates and costs, but again, for our customers that need to use it, this is an amazing program. So you see the rates as low as 7.25, a little bit of discount points here, 2.25 discount points.

And again, we can buy it, get it down to 8% rate, for no cost at all. So all options in between there to still stay at that 10% down. So these are some of our most popular programs. A lot of our borrowers, that need to use our alternative income still wanna get the lowest down payment. So that's why we compare all the 10% down payment options for, this example here.

So if you would like to get your own quote, please get with our team members. They'd be happy to send you quotes for any of these programs that we have here. We have over 400 loan officers, again, licensed in 35 states as a lender and broker, and we have thousands of different loan program options, especially with our non QM options there. So I'd like to thank everybody for joining us. I don't see any questions there in the chat.

Please feel free to drop us a line or, shoot us a chat there if you have any questions. But we'll go ahead and wrap it up for today. Good luck everybody out there shopping. And, again, we're all happy that the rates are down. I just had a little bit of a a jump over the last day, but nothing too crazy.

So keep hunting out there, and good luck.