FHA vs VA vs Conventional vs Non-QM After Late Payments | Live Rate Comparison

Missed a payment recently? Homeownership is still possible.
Join our livestream as we break down FHA, VA, Conventional, and Non-QM loans for borrowers with recent late payments. Learn how programs handle mortgage and consumer lates — from FHA’s flexibility to Non-QM options that accept 1×30, 1×60, or 1×90 lates.

See live side-by-side rate quotes showing how eligibility and pricing change based on your credit history. By the end, you’ll know which loans can help you move forward.

📲 Join live — ask questions anytime!
🎥 Daily Mortgage Rates LIVE Video Podcast

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

Today, we're going to talk about a credit event such as a missed mortgage payment or mortgage late. So a thirty day late, a very common occurrence unfortunately and does affect the different mortgage approvals for our different programs. But we'll take a deep dive today and look at exactly how that can affect the approval here based on our standard programs and our favorite non QM programs that do allow for late specifically can allow us to, confidence, give our approval to our customers. So, first, let's get into our general rates. So let me go ahead and switch my screen, and we'll get started for today.

And, we always wanna look at the general markets here. So we'll pull up the ten year treasury. Definitely, there's lots of tools to track mortgage rates, but this is, one of the most consistent, especially if we're comparing all kinds of different mortgage programs and, just rates in general across the board. The ten year treasury is the best indicators. You can see here this week, this is the last five days.

So we did have a Fed announcement there right in the middle of the week. So you saw it creep up to, the middle here and then came down. And today, it's coming a little bit back up. So, obviously, we have a little bit of up and down every day, but I always wanna pull this up and put things into perspective. Still pretty much at one year lows here, so definitely still a great time.

In general, rates are down overall, so definitely don't panic when you hear about the day to day changes and the, news that the Fed may make. Now let's get into our live rates for today. So these are our rates. I just updated this a minute ago. Live rates for today, it is December 12.

And this is for a standard scenario. So a single family home, a 500,000 purchase price, 300,000 loan amount, that course 60% loan to value. Use a 760 credit score here so we can see all the best options and a 40% debt to income ratio. Those are the settings we use, for all these live rate example way we compare across all the programs. And you'll see here we have dozens of programs listed on our page at all times.

So our first option here are conventional for a primary this is what most people think of when they think of a mortgage loan, a standard, Fannie Mae or Freddie Mac loan. Rates today come in at 5.65. Finally, PR, 5.893. We include all the fees. And if our customer doesn't qualify for conventional, we usually wanna present an FHA option.

FHA allows a little more leniency on credit issues, our topic for today, as well as a higher overall debt to income ratio, but it does require upfront and yearly mortgage insurance. FHA today coming in at 5.125 rate. Final APR is 6.009. Add in all the fees there. So definitely compare the APR.

Notice the APR is a touch higher even though the rate looks lower. Always wanna compare the APR across programs. And for our, eligible vets and active service members and surviving spouses, VA programs are amazing. VA comes in today, 5.25 rate. Final APR there with all the fees, 5.489.

So notice, the rate seems a little bit higher than FHA, but VA has a much better fee structure there for our vets. So definitely compare the APR, much lower APR overall. So definitely the best option for our veterans and eligible borrowers for those programs. And our final, standard government option here, USDA for properties in USDA eligible areas. That's typically the rural areas of the country.

The property is eligible and our borrower's income is eligible to the income limits. These are great options to compare. 5.25, lowest rate option today. Final APR with all the fees included, 5.93. So that's a touch than FHA today.

So if our borrowers considering USDA versus FHA, USDA looks like a touch cheaper today. And it is a touch more expensive than conventional today. So definitely compare those, APRs there. USDA, definitely a great option there for our borrowers that are looking in those areas. And where we love to shine here at the mortgage calculator is to offer a little bit outside the standard under our non QM program.

These are some of our favorite. These are our non QM alt doc options for our primary home. So for our borrowers that may not qualify for LFAJ, VA, USDA, or any of these other options, especially our self employed borrowers may need to use alternative docs. That's where we come in with these options here. So we can do bank statements, ten ninety nine, all kinds of different options, especially for our self employed.

And we typically wanna compare that to the conventional options. So non QM today comes in as low as 5.875 rate. Our APR is 6.145. So this is typical where, non QM is a touch higher than conventional. For the last few weeks, they've been very similar.

This is typical just a touch higher in cost overall. And we can use our non QM all dot programs for investment properties. Rates today come in at 6% flat. Final APR is 6.321. And we'll compare that to our conventional options for investments.

Same rate, 6%. Final APR 6.311. Just a touch cheaper there for conventional. But one of our favorite programs, what we love here at the mortgage calculator, again another outside the box program, DSCR, no income or employment needed. Simply use the estimated rents from the rental property to come in a DSCR ratio.

The estimated rents can cover the expenses. That is a ratio of one or higher, which is what we use for these programs, these examples here. And this one has a three prepayment penalty, which is standard for these programs. Rates today come in 5.999. Finally, PRR is 6.234 for this option, which is cheaper than conventional.

Amazing. And we can add a five year prepay. Sometimes that lowers the rate a little bit, but same rate today, 5.999. But the APR, the cost is a little cheaper, 6.198. Again, beating conventional, all doc.

That's absolutely amazing. And we have a ton of other options here for different loan types. Please feel free to check this out or get with one of our customers to get a full itemized loan estimate with a full breakdown of everything for your scenario. But let's get into today's topic. So we're gonna use the same example.

When we do a deep dive here, I always wanna use an example home. This is a home for sale just here in my nearby area, and it has a decent price. It's brand new home, so nothing too compare there. We can use all kinds of different programs to purchase a new home, and it's not a it looks like a townhome. It's not a condo or townhome.

It's actually just a regular home. So this is a perfect example. Now when we put this property in as a conventional loan, if our borrower has unfortunately missed a recent mortgage payment on another mortgage obviously, because we're doing a purchase. This is a primary purchase example. So for conventional, we typically are asked to put 5% down, which is the typical request, for our primary home using a conventional program option, because that's the lowest amount, typically, and that's for that specific home.

And, there's not really a specific hard deadline there. Most automatic approvals, AUS approvals for conventional, will not approve with a mortgage payment missed in the last twelve months. So typically I mean, if you have very strong credit and there was a good reason, But the automated system doesn't really get to read reasons. They just look straight at the credit report. So it's very common if we can get anything approved with a recent mortgage late.

But if we do, or it's season more than twelve months, you can usually get approval here. And 5.75 option today for this exact scenario at 2.5 discount points in cost. And our par rate for conventional today for this exact zone, 5% down, 6.49 with zero cost there. And remember, this is a 5% down option using all the same scenarios we talked about before. Now when we switch to FHA, FHA allows more leniency and FHA does allow us to get approval, with a recent late.

We'd have to run Oz, of course, the automated underwriting, but FHA does allow more leniency. And if is not possible, there are many options that do allow us to do a manual underwrite under FHA, which is where they will consider, the reason. So we just need to write, provide some good documentation, a good reason, and we can typically get an FHA approval with some mortgage lates. So FHA today, if we do get, the automated approval at 3.5% down, which would be amazing, or if it's seasoned long enough to do so, this is a standard FHA, 5.375, rate today, costing 1.853. And we even have some options with lender credit.

If we go to 6% rate, we can get, point nine eight three back in lender credits towards our closing costs, and that's a standard 3.5% down option for FHA. It does require upfront and yearly mortgage insurance as usual. And our VA options, obviously, VA is great for eligible vets and service members. They do allow a lot of flexibility. So typically, if we run our AUS approval, we can get it granted as long as there is strong other factors there.

And when we send that in writing, typically, lenders will ask to document any reason for the late just as a letter of explanation just to have in the file. But this is sometimes happens, unfortunately. And, fortunately, if we are VA eligible, we do get a little leniency, more so than the other two options as well. And VA coming in 5.5 rate for 2.3 discount points of cost as the lowest rate option. And 5.99 rates, is getting us actually, this one's better.

A 6% rate, so it's getting, costing point four two three. And this is with 0% down payment, 100% financing as typical with VA. Now where we start to be a little more helpful, and a little more certain with what we can offer, this is where we love to offer our non QM programs. So if our borrower again has unfortunately missed a recent payment for a mortgage and wants to get, purchase a new home as a new primary here, the lowest option we can ever offer on non QM is 10% down, 90% l t for a primary home, but there is no PMI required for a non QM, which is pretty cool. But this is our best option when we add a recent one time 30, so a thirty day late within the last twelve months is what this mean, one times 30 times 12.

So this indicates that the borrower has unfortunately missed one payment in the last twelve months. And fortunately, if noncayment's actually written in the guidelines what we can offer. We don't have to wait for an AUS approval or wait for a manual underwrite for an underwriter review it. We actually have it written directly in the guidelines as long as we're offering a little bit higher rate. You see here the rates and costs are a little bit higher.

We can actually offer this right out of the gate because it is written directly in the guidelines. So the lowest, rate here 7.75 with a recent mortgage late and the discount point is 2.375 there the cost. And we do have a par rate option, 8.625 rate for the cost of our par rate. Now this is a non QM program. This option, again, keeps the same 10% down payment.

This was a full doc non QM option, and we do have offers under the same program for bank statements, ten ninety nines, PNLs, etcetera. But this was a full doc for the cheapest option. Any of those other income types, will typically have a little bit higher cost, especially for this program. Now the, cool part about an oncune again is we get a very specific guideline on what we can and cannot do, and we have tons of options, markets calculated over 5,000 combinations. This is again one of great example of different combinations.

If our borrower has unfortunately missed two payments in the last twelve months, two recent thirty day lates, and the last twelve months are recorded, on the VOM or directly on the credit report, this is going to be the best option we can offer. So, we can typically go to 90% as I mentioned with no PMI. However, when we add two recent mortgage lates, we get no options at 90%, but we do have some option 85% LTV or 15% down payment here if our borrowers unfortunately missed those two payments recently. Now because we're putting more down here, we can actually get a little bit lower voices, which is interesting. But again, this, there is no PMI even if we're at 85 LTV.

And the lowest rate option, 7.374 for 2.5 discount points in cost. And the lowest cost option here, we don't have a par rate, but we have 8.2, four nine at a cost of 0.75. And, again, that's the 15% down with recent mortgage lates using our non QM option, and this will still be a full lock option. Again, we can do bank statements, etcetera, under this program. So where we love to offer our our alternative solutions.

So if our borrower is self employed, we see alternative docs. We can, with confidence, give them, the pro that will, work if they have recent mortgage leads as well. And if you want to try the conventional FHA, VA, you do need to realize that those are entered into the AUS approval. So the non QM is a great option. We can always quote both, and, see if we can get AUS approval, but we love to give that confidence to our borrowers, that we still can do the loan with these exact terms using our amazing non QM programs.

So that wraps it up for today. Let me go ahead and switch my screen. And if you have any questions about any of the programs you saw, please give one of our team members. We have over 200 licensed loan offers. We'd be happy to give you a full itemized loan estimate and break down all the different cost and fees for the different options there.

And, you can also go to our website, of course, and request the information. So thanks everybody for joining us today. We'll be back next week with another episode of Daily Raits Live. Thanks, everybody.