🎖️ VA IRRRL | Daily Rates LIVE

🎖️ Eligible veterans can lower their interest rate and reduce monthly payments with minimal paperwork. Join us LIVE to explore VA IRRRL (Streamline Refinance), including who qualifies, net tangible benefit requirements, and why appraisals or income verification are often not needed. We’ll show a live example comparing old and new payments, monthly savings, and the break-even timeline.

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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 today, we'll be talking about foreign national loans for true foreign nationals. But first, let's check out the general rates today and the markets that affect mortgages. So first, we typically wanna look at the ten-year treasuries, one of the best indicators just for rates in general. In the last five days, looks down in general, which is great.

It really tracks with rates overall for all of our different loan programs. And if we pull up the recent one-year, you see we are still here at pretty much one-year, even in some cases three-year lows. So great time to be out there shopping. And now let's check out our actual live rates for our standard loan programs. So as we go over every day, we set up a standard scenario.

That way, we can compare all the different loan options for a standard scenario here. Single-family home, 500,000 purchase, 300,000 loan amount. That's a 60% loan-to-value, 760 FICO credit score, and 40% debt-to-income. That's what we set so we can compare all the programs side by side. So first up here, our conventional option for our primary home rates as low as 5.75 today.

Final APR, 6.02. It's a little bit lower than it was last week, which is amazing. And we have our FHA options. If our borrower doesn't qualify for conventional, typically, FHA may be the best option. Does allow a little more leniency on credit issues, and higher debt-to-income ratio, but does have additional fees, upfront and yearly mortgage insurance.

So rates come in at a little bit lower there, 5.25. But when you include all the fees there, final APR comes in at 6.1. So a little bit higher than conventional, which is pretty typical. VA options for eligible vets and active service members—these programs are typically the best. Rates as low as 5.25 there, but you see with much less fees overall.

Final APR, 5.5. Pretty amazing options and typically the best for eligible borrowers. And USDA is for properties in USDA rural areas of the country, those eligible areas. So if the borrower is in there, these programs are pretty amazing to consider. Rates is always 5%.

Finally, APR is 5.686. And we'll compare that to FHA and conventional, which our borrowers typically compare for different loan options. And you can see that USDA may be the best option, typically a little lower APR overall.

And where we love to shine here, and our topic for today, are non-QM options, a little bit outside the box of the standard programs and allow us to use alternative documentation. Really helps our self-employed borrowers.

We can use bank statements, 1099s, P&L statements, etcetera. So to use alternative docs for a primary home, we can get rates of those 6%. Final APR is 6.272. So just a touch higher than conventional, which is pretty amazing. And we can use our all-docs for investment properties, of course, 6.125 rate.

Finally, APR, 6.448. Same as it was last week. And our conventional options for investments, rates same as it was last week. Again, 6.15. Final APR, 6.438.

And DSCR, pretty much the same as last week. A little bit changed there. DSCR allows us to use no income or employment info, simply the estimated rents from the property to determine a DSCR ratio. The estimated rents can cover the expenses, AKA, the property will cash flow. That is a DSCR ratio over one, which is what we set up for these.

So with a three-year prepayment penalty, this DSCR option today comes at 5.999. Final APR there is 6.307. And we can add a five-year prepayment penalty as well. Rate goes to 5.875. Final APR is 6.157.

And we have an option for no prepayment penalty, of course. And if our borrower doesn't want it or the state doesn't allow it, rates go over 6.125. Final APR, 6.448. About the same there as conventional and our alt-doc. So those are our typical options for DSCR and our standard options.

We have dozens of other programs here on the page. But now that we were talking about DSCR, let's talk about a DSCR loan for someone that may be a foreign national. So let me switch over to my screen here. This is actually the same property we went over the other day. So this property is listed.

It's a great investment property example. So if a borrower is an investor, wants to purchase an investment property such as this four-unit property, and is a true foreign national. So a foreign national is someone that does not live in the U.S. and does not derive their income from the U.S. They are not a permanent resident here. They do not have status here, and they are truly foreign nationals.

So this is different than an I-10, a non-permanent resident alien, or a permanent resident alien, or a U.S. citizen. This is a truly foreign national status. We do have options. So first up here is our most common request from out-of-country investors, which is to purchase a cash-flowing investment property, which hopefully this one would be in our scenario. And we did set a one DSCR value here.

But if our investor wants to use the DSCR program, they can for this exact property. So what we set up here again is a five-year prepayment penalty, which is pretty standard for these DSCR options, especially for a national to get the best rates. And this is going to be a purchase at the lowest rate and the highest LTV that we can offer. And here you see we have some amazing options, and we were able to take it to 75% LTV, 25% down payment. And you see here we have rates as low as 6.125, costing quite a bit there, 3.475.

But we do have a par rate option, zero cost, for 6.875 rates. Pretty amazing there. This requires our borrower, our true foreign national, about 25% down, so a little more than a U.S. citizen. The LTVs are restricted there. But other than that, pretty much a standard DSCR loan.

The property rents need to cover the property expenses. That's a ratio over 1.00, which is what we set for this loan. Other than that, you see the loan amount is actually over 1,000,000, which is also pretty unique. Some loan programs would reduce the LTV. We do not.

We can still get the 75% LTV here using the DSCR option for an investor with a five-year prepay. Another thing to note is many of our foreign nationals, of course, since they don't have income here in the U.S., many times do not have a FICO score. We use 760 in our estimate here, but there are still options for no score, which is oftentimes the case with a true foreign national. They don't have U.S.-based credit.

So now let's talk about another option where our foreign national customer is asking us to buy a home, but they're stating that they want to occupy the home in the U.S.

They want to have a home that they own when they visit the U.S., and perhaps they visit the U.S. often or for a month or two at a time in some cases. And obviously, they need to have a visa if that's the case, to travel to the U.S. But there are many foreign national investors, or just homeowners in this case, that would like to purchase what they may say is a primary home, but this would be a second home. Can't have a primary home if you don't live permanently in the U.S. Your permanent residence would be your foreign national residence, but this could be your second primary home.

So this is going to be a second-home scenario. So great single home I found here, pretty amazing. Oftentimes, our foreign national investors are also asking for jumbo loan amounts. So also a good option here. $1,499,000 home obviously wouldn't fit within the standard dimensional limits anyway.

So we'd already be talking about some sort of jumbo loan or non-QM loan, but when our investor or our client says they're a true foreign national, that obviously changes it up a little bit as well, but we do have options. So here's our full-doc second-home option. So instead of DSCR, we have full doc, meaning we will get full tax returns and verification of income. We do need to do that in the country that the borrower is residing in, obviously. And oftentimes, that requires translation.

So a little bit tricky there, but obviously very doable. And we can do it as a second home, which does allow a little more leniency here. Obviously, there's no prepay penalty here and allows us to take it to the same 75% LTV, this 25% down payment. 6.875 rate costs 2.25 discount points, and a 7.625 rate has no discount points or cost. So a little bit higher rates there because there's no prepayment penalty.

But if our borrower wants to occupy the home for a couple weeks, a couple months of the year, and wants to consider their second primary home, obviously, they can still do it. Many of our investors, and also clients, purchase it as a second home, may do short-term.

So we've done quite a few, for example, in the Orlando area, where many times people from other countries like to travel to the parks there and do want to own a home there. And there are many programs where they can get very competent management to do short-term rentals there. So very common request here. This is a second primary home as we went over.

Second-home, full-doc purchase for a true foreign national. And we did use that estimated 760 FICO credit score, but we do have the same LTVs available if there is no score, which is typical for our true foreign nationals. So pretty unique options there. Let me go ahead and switch my screen. If you have any questions or like a full breakdown or you are a true foreign national that would like to purchase a home here in the U.S., we have those options.

Please give it to our team or go to our website. We'd be happy to help you out. Otherwise, we will catch everybody on the next episode of Daily Rates with The Mortgage Calculator. Thanks, everybody. Have a great day.