🏠 Daily Mortgage Rates LIVE – 11/21/2025 – FHA 203(k) & Conventional Rehab Loans

On today’s Daily Mortgage Rates LIVE, we’re covering Rehab Loans—FHA 203(k) and Conventional—that let you finance a home purchase or refinance with renovations. These loans cover repairs, upgrades, and additions like decks, pools, and ADUs in a single mortgage. We’ll explain how they work, key requirements, and how to turn any property into your dream home or investment. Perfect for buyers who want home financing plus renovation in one loan.

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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 first off here, just always wanna pull up the ten year, treasury. This is typically the best in your overall of all the different programs that we have. So just a nice general indicator. There are more specific examples, that we could get more technical about. But since we're talking about all the different loan, we're gonna look at the market in general.

And fortunately, today, we did have some good news. So you see, the rates are coming down here in the last five days, which is good news for rates. And again, to put it into perspective before I start, I always wanna pull up the full year and notice we're pretty much at one year close here. So it's a great time for everybody out there to go after that home that they've been looking for. But let's talk a little bit more about today's actual mortgage rates for some of our example programs.

So I just refreshed this page. It is after twelve noon eastern. So all of our partners here have their live rates pushed up for today. So this is our live rates for a standard scenario so we can compare across all the loan program options we have. So we've set up a single family, one one unit single family home, 500,000 purchase price, 300,000 loan amount, corresponds to 60% loan to value.

And we use a seven sixty five goes forward, 40% debt to income ratio. That way we can hit all the different loan programs and compare them side by side. But, of course, if you'd like a full breakdown of the exact option, we can obviously go to higher LTVs, etcetera. So first up, we always want to look at our conventional primary. So that's what most people think of of a standard mortgage.

REITs coming in today, 5.875. Finally, PR, 6.135 there. So about the same as it's been the last few days. We typically wanna compare that to an FHA option for our borrowers. FHA does allow a little more leniency on credit issues as well as a higher overall debt to income ratio, but does have a and yearly mortgage insurance included.

And rates today for FHA come in at 5.25%. And final APR 6.148. So even though the rate was a little lower, you see the final APR with all the costs included is actually a little bit higher. So always compare the APR across the different programs that we compare them side by side. And now VA for eligible borrowers, active service members and eligible vets and surviving spouses.

If you are eligible for VA, these options are amazing. VA comes in today, 5.375 rate and the final APR with all of the fees included, 5.627. So notice even though the rate seems a touch higher than FHA, the always going to be better overall. The APR is much lower when we compare it to FHA. So definitely the best option for our borrowers that are eligible in most cases.

Option here, USDA for properties in USDA eligible areas. That's typically the rural areas of the country. So if our property is eligible and our borrower is eligible, this is a great option to consider. USDA at 5.125 rate, final APR 5.802 with all of the costs included. So we'll typically compare that to FHA and conventional and notice the USDA option is typically going to be for most of our borrowers.

They do qualify. So definitely take a peek at USDA if you are looking in those areas. And now where we start to get interesting in our specialty here in store, we love to do all different types of loans, but we specialize in unique loan types including our non QM types. So this is our non QM alt doc option to use either full doc or advanced and organized PNL's alternative documentation for a primary home. So rates today come in at 5.875, final APR 6.145, and we'll typically compare the conventional option.

So if there's any reason our customer doesn't qualify for conventional, we can flip it to a non QM option. You can use alternative docs, and the price is almost identical and the rate is actually identical. Just a touch higher on the overall cost. And we can use our alternative documentation loans for investment properties as well. So a lot of investors love to use these options as it is more flexible.

Rates come in today at 6%, penalty PR 6.321. And we wanna compare that to our conventional option for an investment property. Rates coming in today, rate 6%. Finally, PR is 6.311. So a touch lower on the fees there for conventional, but most of our investors typically like to use our alternative documentation option.

Always great to compare those side by side. And our favorite loan type here at the mortgage calculator, we love to do our DSCR loans, stands for debt service cut ratio, no income or employment needed. Simply use the estimated rents from the property to determine a DSCR ratio, which in this example is one point zero zero for all these examples. And, this option has a three year prepayment penalty, which is pretty standard for these investor programs. We do have options, for five year you see we'll go over next and no prepayment penalty as well.

But this is the standard option. Rates coming in today, 5.999, a little less than yesterday, which is great. Final APR is 6.307, which is actually beating conventional and beating our non QM all talk, typically because we're able to add that three year prepayment penalty to these options. And we can even add a five year prepayment penalty to get the rate and cost of order. So with a five year prepay, rates today for DSCR coming in at 5.875, final APR 6.157, which beats everything across the board when we add that prepaid absolutely amazing for DSCR to be conventional.

And we do have options for DSCR with no prepayment penalty for those investors that don't want it or some states don't allow it. No problem. Rates today coming in at 6% flat. Again, almost identical. Final APR is 6.321.

So just right there, just a touch higher than conventional for no prepayment. Most investors would take this any day, for the ease and flexibility that is offered with DSCR, and and we can close an LLC as well for a business purpose loan, which is amazing. We won't get into our further examples here, but we do have second mortgage options. We do have other DSCR options for forty year, interest only. We have commercial, fix and flip, all kinds of different options.

But today, as I mentioned before, we're going to go over our renovation loans. Definitely a popular request as people are looking to get out there and get shopping again. There may be properties that need work. So, not to pick on any property, but I did look at, my local area here so we can have a specific example. And, this property is obviously just fine, but it might need some work.

You might need some cosmetic work or maybe you wanted to add a full addition because this is a little bit small at 600 square feet. A pretty small house. I look for the cheapest house in the area. So it came in small, but that's a great example. We may need to add some square footage.

We may need to do some cosmetic repairs. It definitely could use a little touch up. Whatever. We wanna make sure we have an actual target home. So in this example, this home is for sale for 375,000, but maybe our customer needs a little more space, maybe they need one more bedroom, maybe they need one more bathroom, maybe they need to paint it, touch it up a little bit, just, put a driveway and put a deck in, whatever they wanna do as long as we make it work.

So we're gonna use 375 as the purchase price, and then we're gonna add some renovations to it. So the first example here is going to be our FHA two zero three k example. So for our FHA two zero three k renovation loans, we can do 3.5% down standard FHA loan, but we can work in all of the repairs. So I know it's a little bit see here, but this example in my text here, we simply assumed a 300,000 all the 375,000 purchase price and a renovation budget of no more than $75,000 for a total price of 450,000. So that's what we set as the purchase price in this example was 450,000 because that's the total budget of the purchase home as is and the renovations that we're going to plan.

Now if we set the price to 450,000, we just need to ensure that the ARV or after repair value comes in at 450,000 or higher when we order that special appraisal report that we're going to order for this product. Now another thing that is cool about the FHA two zero three k, there is an option for a limited and standard. So limited allows budgets no more than 75,000. So actually this example could go either way in our example here. However, it does streamline the process more is what I said here, but anything over 75,000 in budget or requiring structural repairs will require the standard.

So the price is the same in this example for a limited, or a standard. What will matter is what repairs our customer, our borrower wants to do the property. So if they're just for cosmetic repairs, they could do up to 75,000 in cosmetics, easy stuff, nothing structural. But if they wanted to add bedrooms, etcetera, they will need to do the 75,000 and include it in the standard option because they're going to have more inspections, more reports, etcetera, that come with the standard. The limited does allow us to streamline it, go faster, plus inspections, etcetera.

So back to the price. So the price here, great option, 5.5 is the lowest rate, for quite a bit of buy down, 2.342 in buy down cost. Option at 6.375 rate for an actual lender credit for $362 in lender credit to add to our closing cost there. So a few different options, obviously, very reasonable cost here for the FHA, two zero three k option, very similar to the standard FHA. And as I mentioned before, we set the purchase price and the value at 400,000 since that's our price of purchasing the home as is, adding the repairs, that's our total budget.

And we're going to put 3.5% down of the total budget that we're doing and get a 96.5 LTV total loan amount. So the rest of the breakdown looks like this, pretty standard. But that is how the two zero three k option works. Now let's get into our other options. So remember this is a two zero three k.

This could either limited or streamlined as long as it's under 75,000. Just depends on what types of repairs. Anything over 75,000 needs to be a standard. Typically includes five inspections. Now let's talk about the Fannie Mae version.

So this is our conventional option using Fannie Mae. They call it their home style rehab loan and Fannie Mae allows up to 97 TV with or 3% down. So in this example, a touch lower down payment, definitely a little bit tighter on the on the, overall DTIs as well as, the credit issues. So a little bit harder to qualify, but if our customer does have a little bit higher credit, better profile, this is a great option. And notice the rates coming in today, 6.375 rate option we can get in this example for 2.375 in costs.

And there is a par rate option here, 7.5 rate for no discount points of cost for And this is the same exact option, dollars 450,000 purchase price, $75,000 budget was included in there, and just a touch lower on the down payment as we mentioned. So this option, there isn't really a streamlined option here and, this one is pretty straightforward. Now the other option pulled up, we do have a streamlined option with our Freddie Mac. So the option we do have available for Freddie Mac to cut it into a perhaps inspection or less than five at least which is a standard, is we have to have a rehab budget of less than 35,000 and similar to the two zero three k structural or major repairs. So this example is our Freddie Mac Choice Reno Express rehab loan, and again 3% down.

So just a little bit different and notice here, there's a touch different on the cost because the overall budget instead of being 450,000 is the purchase price of $3.75 plus the max 35,000 in, basically cosmetic repairs. So a little bit smaller scope of budget here, a little bit smaller down payment. In this example might be preferable for our borrowers. Just about the same rate, 6.375 rate, crossing 2.375 in cost, And not quite a par rate, but the, lowest cost rate here coming in 7.125 for point eight seven five discount points and cost to use that express version. Definitely these, loans are challenging.

Definitely closed a few. We've even been the customer on a few. They allow us to step into equity many times or us as in our borrowers to step into equity many times, which is a great option. It does take a lot of work. The contractor has to be moved, has to jump through hoops.

The inspections are the big thing. So as I mentioned, most of the standard options require five inspections. And these streamlined options we went over, typically could be less, perhaps even one overall inspection. If there's just some simple cosmetics, paints, things like that, those can go pretty quickly. So the long project, the more complicated it gets.

The larger the project, the more complicated it gets. But these options are amazing for us to buy a home that may not be in the best condition. So this isn't the worst home, but it could be better. And that home that might be in the right location and make it perfect for our borrowers. So that is the objective there for the renovation loans.

And again, if you have any question or like a full breakdown, please get with one of our loan officers. We are licensed in 35 states and now over 300 loan officers that would be happy to send you the full, two zero k or, HomeStyle or, Freddie Mac versions as well. So thanks everybody for joining us. Don't see any questions at the moment, but good luck out there everybody on your house hunting and definitely some good news for Reeves today. So keep up the work.

Thanks everybody.