September 23, 2024 • 14 mins
In today's episode of Daily Mortgage Rates Live, we’re diving into a powerful and flexible financing tool—Asset Utilization Loans. If you're sitting on significant assets but lack the traditional income streams that banks typically look for, this episode is for you! We’ll break down how these innovative loans work, who qualifies, and why they could be a game-changer for entrepreneurs, retirees, and high-net-worth individuals. Whether you’re looking to purchase your dream home or refinance without the hassle of proving income, asset utilization could be the perfect fit. Tune in to discover how to leverage your wealth and unlock new opportunities in the mortgage world!
Don't miss this insightful conversation—it might just open doors to a smarter financial future!
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 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, P&L Mortgages, Asset Based Mortgage Programs, No Ratio CDFI Loan Programs, DSCR Investor Mortgages, Co
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 Stateme
Mark as Played
Transcript
Episode Transcript
Available transcripts are automatically generated. Complete accuracy is not guaranteed.
Restream recording Sep 23, 2 (00:00):
So welcome everyone.
(00:00):
My name is Kyle Hiersche.
I am the COO of the MortgageCalculator joined here by our
president Nick Hiersche and ourCSO Jose Gonzalez.
We are a lender that specializesin non QM loans and what we do
every Weekday at 11 a.
m.
Eastern on this show is gothrough our actual live mortgage
rates for a few programs Andthen we do a deep dive into a
different loan type Today's loantype is definitely an amazing
(00:20):
non qm loan that we are veryfamiliar with here at the
mortgage calculator Which isasset utilization loan, so we'll
get into that here shortly.
But first let's go over ourrates So nick if you're ready,
we can go ahead and pull up therates and see what they're
looking like today.
All right So, rates are lookinggood, still at one plus year
(00:41):
low, so that's great.
We will pull up all of ourprograms and compare the APR
across our standard programs asour rates are live for today,
September 23rd.
Just after 11 a.
m.
Eastern, so all the standardprograms have their initial rate
sheets.
If you'd like a full breakdownand itemized loan estimate that
breaks down all the fees that gointo the APR, Please get with
one of our team members.
They'd be happy to help you out.
(01:02):
So, what we will compare todayas we do every day is a basic
scenario.
We'll set up a single familyhome, 500, 000 purchase, 400,
000 loan amount.
That corresponds to 80 percentloan to value, 20 percent down
payment.
Set an estimated 760 FICO creditscore and an estimated 40
percent debt to income ratio.
So with those settings, as we doevery day, let's check out the
(01:25):
live rates.
So again, one and a half yearlows roughly for all of these
products.
So absolutely amazing time toget out there and get going.
Our first option, 30 year fixedconventional for a primary home,
typically the most common optionpeople think of when they think
of a mortgage rates today comingin at 5.
625 final APR 5.
(01:46):
915.
So great option again, one and ahalf year lows.
Now, if there's any reason ourcustomer doesn't qualify for a
standard conventional option.
Typically want to quote an FHAoption as well.
FHA allows more leniency oncredit issues and a higher
overall debt to income ratio,but does require upfront and
yearly mortgage insurance.
Rates today come in at 4.
75 with all of the fees andmortgage insurance, 5.
(02:08):
688 is the final APR.
So if our customer qualifies forboth, they may want to consider
FHA if they're willing to do themortgage insurance.
And the customers that need touse FHA, definitely a very
comparable option.
And VA great option for eligiblevets and active service members
rates as low as 4.
99 final APR 5.
275 with a standard funding feehere.
(02:28):
And notice the final APRdefinitely beats out FHA and
conventional.
So our eligible vets and activeservice members definitely take
advantage of the VA program andmoving on to the final standard
option.
USDA is only for properties inUSDA eligible areas.
That's the rural areas of thecountry.
The property is eligible and ourborrowers are eligible.
These are great options toconsider.
(02:50):
USDA comes in today, 4.
875.
Finally, standard fees, 5.
598.
So if our customers shopping inthese USDA areas and comparing
to FHA, it's going to be a touchcheaper and also a touch cheaper
than conventional.
So great option in those ruralareas.
And that rounds out the standardoptions and any banker lender
has.
And unfortunately, if ourcustomer doesn't qualify, many
(03:10):
banks will have to deny them.
But we have 5, 000 additionaloptions.
Starting with our 30 year fixednon QM alt doc options for a
primary home.
So if our customer doesn'tqualify with conventional
documents, uh, two years of taxreturns, etc., we can switch to
alternative docs by switching tothis program, using bank
statements, 1099s, assetrelated, which is our topic for
(03:31):
today.
P& L is all kinds of differentoptions.
Rates today are at 6 percent fora bank statement option, the
most common option.
Final APR, 6.
309.
So notice we're within, uh,we're within 0.
4 today, usually within about 0.
5 of conventional to switch tousing AltDoc.
So great option for ourcustomers that need a little
extra help there.
We can still get them the homethey really want.
(03:52):
And going to investmentproperties.
First up, our non QM AltDoc forinvestments, again, bank
statement or similar.
Let me get a 6.
375, final APR 6.
694, and we'll compare that toour other investment options.
Remember, there are nogovernment programs, so no USDA,
FHA, or VA, but we do haveconventional for investment
(04:13):
properties.
Conventional coming in 6.
125 rate today, final IPR 6.
452, and notice that's a touchcheaper than AltDoc, which is
typical, and also a touchcheaper than our favorite
program, DSCR, with a three yearprepay.
DSCR stands for Debt ServiceCoverage Ratio.
No income needed, no employmentinformation needed, only use the
estimated rents from theappraisal to determine the
(04:35):
estimated DSCR ratio.
If the estimated rents can coverthe estimated expenses, that's a
ratio of 1.
0 or higher, which is preferred.
And this option has a 3 yearprepay, which is the most
common, coming in today at 6.
25, finally up here at 6.
553, just a touch aboveconventional.
We were beating conventional forquite a bit with our 3 year
option, but right now it's abouteven.
(04:55):
But we can sweeten the deal withour 5 year option.
Some of our DSCR programs allowa 5 year prepayment penalty.
Which beats conventional.
Absolutely.
Amazing.
Raise as low as 5.
875.
Find like our 6.
193.
Absolutely amazing.
And we do have a no prepaymentpenalty option.
Some states don't allow it andsome customers don't want it.
That's not a problem.
(05:16):
With no prepayment, DSCR comesin at 6.
375.
Finally, PR 6.
694.
So again, a touch aboveconventional, but most investors
prefer a DSCR.
And if they can add a prepaymentpenalty and definitely sweeten
the deal a little bit, addingthat prepay and our final two
options, we always go over ourmost popular alternative second
(05:37):
mortgage product, our 30 yearfixed second mortgage, these are
non QM products that arealternatives to a HELOC, which
is typically the option for ourcustomers that want to keep
their first mortgage and stillget some access to cash.
Now we can do our 30 year fixedsecond mortgages for a primary
home.
Rates as low as 8.
125, which is a lower rate thana HELOC and fixed.
And final APR comes out to 8.
527 to get cash out of a primaryhome without having to touch
(06:00):
that first mortgage.
And we can use the same programsfor investment properties.
HELOCs are very rare forinvestment properties, so these
are great options.
Rates as low as 9.
25 to get cash out of aninvestment property without
touching the first mortgage.
Finally, PR 9.
542.
And these second mortgageprograms are non QM.
So we can use bank statements,1099s, PNLs.
And similar to our topic fortoday, switch the screen here,
(06:28):
which is asset utilization, avery cool subset of non QM.
Remember when we pull up the nonQM, we typically go over the
most common option, which is abank statement.
But we have tons of flexibility,thousands of different options
and programs and variations.
Asset utilization being one ofthem.
Uh, Jose, let's talk a littlebit about what this is in
(06:48):
general and why we would do thisas opposed to a bank statement
or the more common non QMoptions that we show every day.
And then let's check out somelive rates for these programs.
Yeah, like Kyle was mentioningearlier in the program, this is
definitely a mind blower programbecause this program actually
lets you use assets, liquidfunds you may have in a checking
(07:09):
account, savings account, 401k,Robinhood account, retirement,
IRA, anything that can beconverted to cash, liquid, or
even like the 401k semi liquidcan be used to qualify the
borrower.
Now, there are a multitude ofdifferent guidelines for this,
(07:32):
so I can't really tell you whatthe exact formula is.
because each investor will havetheir own income calculations.
But the important thing to note,the assets do not have to be
pledged.
You only have to have, uh, ownthem, uh, in your possession a
certain amount of time.
Again, that's going to vary.
That's called seasoning of theasset.
(07:54):
Uh, so you do have to hold it acertain amount of time so that
the asset can be considered.
And that's simply it.
It's going to be the, the totalvalue of the asset portfolio.
Is going to be divided by thenumber of months for that
particular investor.
And that is how they willcalculate the income.
It is a very amazing program.
(08:16):
Uh, back, uh, we used to havethese options, uh, that are
available from like largebrokerage houses where you're
actually pledging the stocks andbonds and the other financial
instruments.
In this case, uh, you're notpledging anything.
You're just providing thestatements.
So let's get right into it herewith our asset utilization
options for both primary andinvestment properties.
(08:41):
As with all non QM, uh, themaximum LTV for all non QM is 90
percent LTV.
And in this particular scenario,we are able to attain 90 percent
LTV for a primary purchase, uh,So here you're looking at 8.
5 percent lowest cost option atthree quarters of a point, and
(09:02):
you can buy that down all theway to 7.
49 percent at a cost of 2.
5 points for asset utilizationprimary purchase with 10 percent
down.
Now our asset utilizationinvestment purchase with only 15
percent down and look at thoserates, right?
7.
(09:22):
99 lowest cost option, threequarters of a point.
You can buy that down all theway to 6.
875 at a cost of 3.
25 points for our investmentasset utilization, 85 percent
LTV.
And now for our low credit scoreborrower, we are looking here,
(09:43):
600 credit score being theminimum that we have for this
product, 20 percent down beingthe minimum down payment as
well.
And it is 11.
125 lowest cost option.
And you can buy that down allthe way to 9.
499.
And in this case, this happensto be for an investment
(10:05):
purchase.
And now for some cash outoptions, last two options here
are cash out.
Here is our asset utilization,primary cash out maximum at loan
to value is 80%.
But do notice as we lower theLTV, look at the cost on those
rates.
7.
(10:26):
625 is at par and you can buythat down all the way to 6.
5 percent at a cost of 2.
375 points.
And our last option here is ourasset utilization investment
property cash out also amazingly80 percent LTV and we are
(10:48):
looking at 8.
124 being our lowest cost optionat par and you can buy that down
all the way to 6.
874.
At a cost of 3.
5 points.
So some incredible options thismorning for asset utilization
loans.
So do look to the mortgagecalculator for all your outside
(11:10):
the box.
Loan solutions.
All right.
Looks like we have somequestions here.
So that's good.
Let's start pulling up thequestions here.
And if you have any more, youcan drop them in the chat there.
We'll pull up the firstquestion.
First question is, can we doconstruction loans using our
land as collateral and DSCR?
(11:30):
Well, um, not exactly, but Iwill state the following.
If this is an investment.
Construction loan, right?
For a spec home.
It never uses the personalincome of the borrower.
If we're using a true ground upconstruction option, that is
simply going to use the profiton the deal.
(11:52):
So no need to have to worryabout going DSCR if it's an
investment property that isgetting built with construction
loan and you're using a trueground up construction.
Bridge loan.
The only time when income isgoing to come into play for a
construction loan is if it's aprimary or second home and
(12:13):
you're using one of the one timeclosed construction loan
options.
All right.
Next question is, do we do SBAloans here at the Mortgage
Calculator?
We absolutely do.
Make sure you tune in.
I know we recently had a showand we'll have one again in the,
in the not too far future.
(12:33):
Uh, we do offer SBA loans thathave real estate and SBA loans
that don't have real estatewhere they're just buying the
business opportunity.
Uh, a lot of people don't thinkthat that's possible, but
absolutely we can do SBA loanswith and without real estate.
All right.
Next question is, does age playa factor with the 401k when
(12:56):
utilized as an asset due totaxes and fees of early
withdrawal?
Great question.
Uh, well, I mean, if we'retalking about age of the
borrower, no, I mean, you can'tdiscriminate based on age of the
borrower.
Uh, and now maybe we're talkingage of the assets, like
seasoning of the assets.
You usually have to.
(13:17):
So, you have those assets, uh, acertain number of months before
they can be used, uh, andcounted towards, uh, income
calculations.
But if there is a penalty onwithdrawal, that's taken into
account, correct?
That's yes, you you do have, youdo have to provide the terms and
conditions of withdrawal.
What's going to happen is thatusually for the asset type,
(13:39):
there will be uh certainhaircuts like we like calling
them.
So, for an asset that has lessliquidity.
Like a 401k, it's not going tobe counted at a hundred percent.
It's going to be given a haircutand that's how they're going to
deal with the reduced liquidity.
(13:59):
All right, looks like that's it,but thank you for the questions.
Definitely appreciate it andamazing program here.
Let's go ahead and wrap it upthen.
Remember that we do this show at11 a.
m Eastern every weekday where wego through our live rates and
then do a deep dive into adifferent loan type.
So we'll have a new loan typefor you tomorrow.
We'll see you all tomorrow, 11a.
m.
Eastern for the next episode ofdaily rates live with the
mortgage calculator.
(14:20):
Have a great day, everyone.
So welcome everyone.
(00:00):
My name is Kyle Hiersche.
I am the COO of the MortgageCalculator joined here by our
president Nick Hiersche and ourCSO Jose Gonzalez.
We are a lender that specializesin non QM loans and what we do
every Weekday at 11 a.
m.
Eastern on this show is gothrough our actual live mortgage
rates for a few programs Andthen we do a deep dive into a
different loan type Today's loantype is definitely an amazing
(00:20):
non qm loan that we are veryfamiliar with here at the
mortgage calculator Which isasset utilization loan, so we'll
get into that here shortly.
But first let's go over ourrates So nick if you're ready,
we can go ahead and pull up therates and see what they're
looking like today.
All right So, rates are lookinggood, still at one plus year
(00:41):
low, so that's great.
We will pull up all of ourprograms and compare the APR
across our standard programs asour rates are live for today,
September 23rd.
Just after 11 a.
m.
Eastern, so all the standardprograms have their initial rate
sheets.
If you'd like a full breakdownand itemized loan estimate that
breaks down all the fees that gointo the APR, Please get with
one of our team members.
They'd be happy to help you out.
(01:02):
So, what we will compare todayas we do every day is a basic
scenario.
We'll set up a single familyhome, 500, 000 purchase, 400,
000 loan amount.
That corresponds to 80 percentloan to value, 20 percent down
payment.
Set an estimated 760 FICO creditscore and an estimated 40
percent debt to income ratio.
So with those settings, as we doevery day, let's check out the
(01:25):
live rates.
So again, one and a half yearlows roughly for all of these
products.
So absolutely amazing time toget out there and get going.
Our first option, 30 year fixedconventional for a primary home,
typically the most common optionpeople think of when they think
of a mortgage rates today comingin at 5.
625 final APR 5.
(01:46):
915.
So great option again, one and ahalf year lows.
Now, if there's any reason ourcustomer doesn't qualify for a
standard conventional option.
Typically want to quote an FHAoption as well.
FHA allows more leniency oncredit issues and a higher
overall debt to income ratio,but does require upfront and
yearly mortgage insurance.
Rates today come in at 4.
75 with all of the fees andmortgage insurance, 5.
(02:08):
688 is the final APR.
So if our customer qualifies forboth, they may want to consider
FHA if they're willing to do themortgage insurance.
And the customers that need touse FHA, definitely a very
comparable option.
And VA great option for eligiblevets and active service members
rates as low as 4.
99 final APR 5.
275 with a standard funding feehere.
(02:28):
And notice the final APRdefinitely beats out FHA and
conventional.
So our eligible vets and activeservice members definitely take
advantage of the VA program andmoving on to the final standard
option.
USDA is only for properties inUSDA eligible areas.
That's the rural areas of thecountry.
The property is eligible and ourborrowers are eligible.
These are great options toconsider.
(02:50):
USDA comes in today, 4.
875.
Finally, standard fees, 5.
598.
So if our customers shopping inthese USDA areas and comparing
to FHA, it's going to be a touchcheaper and also a touch cheaper
than conventional.
So great option in those ruralareas.
And that rounds out the standardoptions and any banker lender
has.
And unfortunately, if ourcustomer doesn't qualify, many
(03:10):
banks will have to deny them.
But we have 5, 000 additionaloptions.
Starting with our 30 year fixednon QM alt doc options for a
primary home.
So if our customer doesn'tqualify with conventional
documents, uh, two years of taxreturns, etc., we can switch to
alternative docs by switching tothis program, using bank
statements, 1099s, assetrelated, which is our topic for
(03:31):
today.
P& L is all kinds of differentoptions.
Rates today are at 6 percent fora bank statement option, the
most common option.
Final APR, 6.
309.
So notice we're within, uh,we're within 0.
4 today, usually within about 0.
5 of conventional to switch tousing AltDoc.
So great option for ourcustomers that need a little
extra help there.
We can still get them the homethey really want.
(03:52):
And going to investmentproperties.
First up, our non QM AltDoc forinvestments, again, bank
statement or similar.
Let me get a 6.
375, final APR 6.
694, and we'll compare that toour other investment options.
Remember, there are nogovernment programs, so no USDA,
FHA, or VA, but we do haveconventional for investment
(04:13):
properties.
Conventional coming in 6.
125 rate today, final IPR 6.
452, and notice that's a touchcheaper than AltDoc, which is
typical, and also a touchcheaper than our favorite
program, DSCR, with a three yearprepay.
DSCR stands for Debt ServiceCoverage Ratio.
No income needed, no employmentinformation needed, only use the
estimated rents from theappraisal to determine the
(04:35):
estimated DSCR ratio.
If the estimated rents can coverthe estimated expenses, that's a
ratio of 1.
0 or higher, which is preferred.
And this option has a 3 yearprepay, which is the most
common, coming in today at 6.
25, finally up here at 6.
553, just a touch aboveconventional.
We were beating conventional forquite a bit with our 3 year
option, but right now it's abouteven.
(04:55):
But we can sweeten the deal withour 5 year option.
Some of our DSCR programs allowa 5 year prepayment penalty.
Which beats conventional.
Absolutely.
Amazing.
Raise as low as 5.
875.
Find like our 6.
193.
Absolutely amazing.
And we do have a no prepaymentpenalty option.
Some states don't allow it andsome customers don't want it.
That's not a problem.
(05:16):
With no prepayment, DSCR comesin at 6.
375.
Finally, PR 6.
694.
So again, a touch aboveconventional, but most investors
prefer a DSCR.
And if they can add a prepaymentpenalty and definitely sweeten
the deal a little bit, addingthat prepay and our final two
options, we always go over ourmost popular alternative second
(05:37):
mortgage product, our 30 yearfixed second mortgage, these are
non QM products that arealternatives to a HELOC, which
is typically the option for ourcustomers that want to keep
their first mortgage and stillget some access to cash.
Now we can do our 30 year fixedsecond mortgages for a primary
home.
Rates as low as 8.
125, which is a lower rate thana HELOC and fixed.
And final APR comes out to 8.
527 to get cash out of a primaryhome without having to touch
(06:00):
that first mortgage.
And we can use the same programsfor investment properties.
HELOCs are very rare forinvestment properties, so these
are great options.
Rates as low as 9.
25 to get cash out of aninvestment property without
touching the first mortgage.
Finally, PR 9.
542.
And these second mortgageprograms are non QM.
So we can use bank statements,1099s, PNLs.
And similar to our topic fortoday, switch the screen here,
(06:28):
which is asset utilization, avery cool subset of non QM.
Remember when we pull up the nonQM, we typically go over the
most common option, which is abank statement.
But we have tons of flexibility,thousands of different options
and programs and variations.
Asset utilization being one ofthem.
Uh, Jose, let's talk a littlebit about what this is in
(06:48):
general and why we would do thisas opposed to a bank statement
or the more common non QMoptions that we show every day.
And then let's check out somelive rates for these programs.
Yeah, like Kyle was mentioningearlier in the program, this is
definitely a mind blower programbecause this program actually
lets you use assets, liquidfunds you may have in a checking
(07:09):
account, savings account, 401k,Robinhood account, retirement,
IRA, anything that can beconverted to cash, liquid, or
even like the 401k semi liquidcan be used to qualify the
borrower.
Now, there are a multitude ofdifferent guidelines for this,
(07:32):
so I can't really tell you whatthe exact formula is.
because each investor will havetheir own income calculations.
But the important thing to note,the assets do not have to be
pledged.
You only have to have, uh, ownthem, uh, in your possession a
certain amount of time.
Again, that's going to vary.
That's called seasoning of theasset.
(07:54):
Uh, so you do have to hold it acertain amount of time so that
the asset can be considered.
And that's simply it.
It's going to be the, the totalvalue of the asset portfolio.
Is going to be divided by thenumber of months for that
particular investor.
And that is how they willcalculate the income.
It is a very amazing program.
(08:16):
Uh, back, uh, we used to havethese options, uh, that are
available from like largebrokerage houses where you're
actually pledging the stocks andbonds and the other financial
instruments.
In this case, uh, you're notpledging anything.
You're just providing thestatements.
So let's get right into it herewith our asset utilization
options for both primary andinvestment properties.
(08:41):
As with all non QM, uh, themaximum LTV for all non QM is 90
percent LTV.
And in this particular scenario,we are able to attain 90 percent
LTV for a primary purchase, uh,So here you're looking at 8.
5 percent lowest cost option atthree quarters of a point, and
(09:02):
you can buy that down all theway to 7.
49 percent at a cost of 2.
5 points for asset utilizationprimary purchase with 10 percent
down.
Now our asset utilizationinvestment purchase with only 15
percent down and look at thoserates, right?
7.
(09:22):
99 lowest cost option, threequarters of a point.
You can buy that down all theway to 6.
875 at a cost of 3.
25 points for our investmentasset utilization, 85 percent
LTV.
And now for our low credit scoreborrower, we are looking here,
(09:43):
600 credit score being theminimum that we have for this
product, 20 percent down beingthe minimum down payment as
well.
And it is 11.
125 lowest cost option.
And you can buy that down allthe way to 9.
499.
And in this case, this happensto be for an investment
(10:05):
purchase.
And now for some cash outoptions, last two options here
are cash out.
Here is our asset utilization,primary cash out maximum at loan
to value is 80%.
But do notice as we lower theLTV, look at the cost on those
rates.
7.
(10:26):
625 is at par and you can buythat down all the way to 6.
5 percent at a cost of 2.
375 points.
And our last option here is ourasset utilization investment
property cash out also amazingly80 percent LTV and we are
(10:48):
looking at 8.
124 being our lowest cost optionat par and you can buy that down
all the way to 6.
874.
At a cost of 3.
5 points.
So some incredible options thismorning for asset utilization
loans.
So do look to the mortgagecalculator for all your outside
(11:10):
the box.
Loan solutions.
All right.
Looks like we have somequestions here.
So that's good.
Let's start pulling up thequestions here.
And if you have any more, youcan drop them in the chat there.
We'll pull up the firstquestion.
First question is, can we doconstruction loans using our
land as collateral and DSCR?
(11:30):
Well, um, not exactly, but Iwill state the following.
If this is an investment.
Construction loan, right?
For a spec home.
It never uses the personalincome of the borrower.
If we're using a true ground upconstruction option, that is
simply going to use the profiton the deal.
(11:52):
So no need to have to worryabout going DSCR if it's an
investment property that isgetting built with construction
loan and you're using a trueground up construction.
Bridge loan.
The only time when income isgoing to come into play for a
construction loan is if it's aprimary or second home and
(12:13):
you're using one of the one timeclosed construction loan
options.
All right.
Next question is, do we do SBAloans here at the Mortgage
Calculator?
We absolutely do.
Make sure you tune in.
I know we recently had a showand we'll have one again in the,
in the not too far future.
(12:33):
Uh, we do offer SBA loans thathave real estate and SBA loans
that don't have real estatewhere they're just buying the
business opportunity.
Uh, a lot of people don't thinkthat that's possible, but
absolutely we can do SBA loanswith and without real estate.
All right.
Next question is, does age playa factor with the 401k when
(12:56):
utilized as an asset due totaxes and fees of early
withdrawal?
Great question.
Uh, well, I mean, if we'retalking about age of the
borrower, no, I mean, you can'tdiscriminate based on age of the
borrower.
Uh, and now maybe we're talkingage of the assets, like
seasoning of the assets.
You usually have to.
(13:17):
So, you have those assets, uh, acertain number of months before
they can be used, uh, andcounted towards, uh, income
calculations.
But if there is a penalty onwithdrawal, that's taken into
account, correct?
That's yes, you you do have, youdo have to provide the terms and
conditions of withdrawal.
What's going to happen is thatusually for the asset type,
(13:39):
there will be uh certainhaircuts like we like calling
them.
So, for an asset that has lessliquidity.
Like a 401k, it's not going tobe counted at a hundred percent.
It's going to be given a haircutand that's how they're going to
deal with the reduced liquidity.
(13:59):
All right, looks like that's it,but thank you for the questions.
Definitely appreciate it andamazing program here.
Let's go ahead and wrap it upthen.
Remember that we do this show at11 a.
m Eastern every weekday where wego through our live rates and
then do a deep dive into adifferent loan type.
So we'll have a new loan typefor you tomorrow.
We'll see you all tomorrow, 11a.
m.
Eastern for the next episode ofdaily rates live with the
mortgage calculator.
(14:20):
Have a great day, everyone.
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