Daily Mortgage Rates LIVE - 09/26/2024 - ITIN Loans

In this episode of Daily Mortgage Rates Live, we shine a light on a unique mortgage solution—ITIN Loans. If you don’t have a Social Security Number but have an Individual Taxpayer Identification Number (ITIN), this episode is for you! We’ll explain how ITIN loans work, who qualifies, and why they’re a great option for non-U.S. citizens or undocumented immigrants looking to achieve their dream of homeownership. You’ll learn about the documentation required, the benefits of this loan type, and how you can qualify even without a traditional credit history.

If you’ve been told homeownership is out of reach, think again! Tune in and find out how an ITIN loan can turn your dreams into reality.


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, Commercial Mortgages, Fix and Flip Mortgages and thousands more!

Our Mort

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

Episode Transcript

Restream recording Sep 26, 2 (00:00):
So welcome everyone.
My name is Kyle Hiersche.
I'm the COO of the MortgageCalculator, joined here by our
president at 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 live mortgage rates.
And then we do a deep dive intoa different loan type.
Today's loan type is going to bemortgage.
I 10 loans for borrowers with I10 numbers.

(00:20):
So, uh, we'll get into that hereshortly.
But first, let's go ahead andcheck out the rates.
So Nick, if you're ready, let'sgo ahead and pull up today's
rates and see what they'relooking like.
All right, so still at uh, one,one and a half year lows, which
is great.
Uh, did tick up a little bitfrom last week, but we'll check

(00:41):
out the rates for today.
It is September 26th, just after11 a.
m.
Eastern.
So all of our standard programshave their initial rate sheets
here.
We'll compare the APR across theprograms.
If you'd like a full breakdown,uh, itemized loan estimate,
itemizes all the fees that gointo the APR, please get with
our team members.
They'd be happy to send thatover.
For the demo, as we do everyday, we'll set up a standard

(01:02):
scenario, a single family home,500, 000 purchase price, 400,
000 loan amount corresponds to80 percent loan to value 20
percent down payment isestimated 760 credit score and
an estimated 40 percent debt toincome ratio.
So let's check out the rates fortoday.

(01:25):
So first up, our 30 year fixedconventional option for primary,
that's the most common optionpeople think of when they think
of a mortgage rates today comingin 5.
75 on IPR 6.
067 just ticked up a touch abovesix there.
We've been under six for awhile, but we're still at one
year lows.
Now, if for any reason, ourcustomer doesn't qualify for a

(01:46):
conventional option.
Typically, we want to present anFHA option.
FHA allows more dependency oncredit issues and a higher debt
to income ratio overall, butdoes require upfront and yearly
mortgage insurance.
FHA coming in today, 4.
99 rate, kind of like your 5.
924.
So if our customer qualifies forboth, they may consider FHA if
they're willing to do themortgage insurance.

(02:07):
But, uh, it's very comparablecost here.
It's a touch cheaper, uh,overall and a great option for
our customers that need to use aFHA.
Moving on to our VA for eligiblevets and active service members.
These are great options.
Rates today, 5.
125.
Final APR, the standard fundingfee here, 5.

(02:27):
402.
So when we compare across theprograms, a VA is definitely
going to be the best option forour borrowers that are eligible.
Cause it's going to have thelowest APR there.
And the final option for ourstandard options, USDA is only
eligible for our properties thatare in USDA eligible areas, the
rural areas of the country.
If the property is eligible,these are great options to

(02:48):
consider.
Rates today coming at 4.
99.
I like are the fees included 5.
716.
So if our customers are shoppingin those areas, they're going to
be comparing to an FHA is goingto be a touch cheaper and touch
cheaper than conventional too.
So great option for those areas.
That rounds out our standardoptions that every bank or

(03:09):
lender has, and if our customerdoesn't qualify, unfortunately,
our other banks may have to denythem.
That's where we have 5, 000other programs.
First up, coming in today withour non QM alt doc option with
some good movement.
So, we'd love to see when non QMmoves down and the conventional
is, uh, moved up a tick.

(03:29):
So, if our customer doesn'tqualify with our conventional
option, needs to switch to altdocs, such as bank statements,
1099s.
Uh asset related pnl some of theother topics we did this week
rates today coming in 5.
875 absolutely amazing final apr6.
193 Almost identical toconventional.
It's amazing when we can use ouralt doc options for nearly

(03:51):
identical price And moving on toinvestment properties tons of
options for investmentproperties.
So for alt doc is our firstoption So bank statements again
1099s asset related Coming intoday 6.
58 final apr 6.
823 And we'll compare that tothe other investment property

(04:12):
options.
Conventional is coming in today.
6.
25 rate by my PR 6.
581.
So this is such cheaper than ourall doc, but not cheaper than
our favorite options.
DSCR coming in smoking againtoday and the five year coming
in even more smoking.
DSCR stands for debt servicecoverage ratio, no income
information needed, noemployment information from the

(04:34):
borrower.
Simply use the estimated rentsfrom the appraisal to determine
a DSCR ratio.
The estimated rents can coverthe estimated expenses, aka the
property will cash flow.
That's a ratio of one or higher,which is preferred.
And for our first option herewith our three year prepayment
penalty, squeaking out, uh, byconventional a tad there, 6.
125 rate.
Finally, pay our 6.

(04:55):
425, which is amazing.
And we can sweeten the deal witha five year prepay.
Coming in today, 5.
75.
Final APR, 6.
065.
Absolutely amazing.
And blowing conventional out ofthe water there for our DSCR
with a five year prepay.
And not much change in the noprepayment penalty option, but
we do have that.

(05:15):
Rates today, 6.
5.
Final APR, 6.
823.
So that's going to be a touchmore expensive than the
conventional, which is typical.
I would still say a hundredpercent of investors would
prefer a DSCR when the costs arevery comparable here.
And if you can add a prepaymentpenalty definitely sweetens the
deal and the final two optionswe have are Second mortgages

(05:37):
typically our customers thathave a low rate first mortgage
lower than the rates we'reseeing today I want to keep that
first mortgage, but still wantto get cash out typically a he
locks the most common option Butnow we have our 30 year fixed
second mortgages for our primaryborrowers to give Cash out, 8.
125.
Final APR, 8.
542.

(05:57):
Definitely a great option, lowerrates than a HELOC, and
obviously not adjustable like aHELOC.
And same for our investors, canget cash out without touching
that first mortgage.
Rates as low as 9.
25.
Final APR, 9.
557.
Some great options for ourinvestors there, as HELOCs are
very rare for them as well.
Let me go ahead and switchscreens again.

(06:22):
Get into our topic for today.
So I 10 is a citizenship type.
So when we do our live rates, wedon't go through the different
citizenship types.
We love to have options for alldifferent statuses.
So Jose, let's first talk aboutstatus because that's usually
the most confusing part of this.
Um, and then let's talk aboutthe options that we have for the
true I 10s, which may bedifferent than what people think

(06:44):
they are.
Yes.
Good morning, everybody.
Thank you for joining us forDaily Mortgage Rates Live with
The Mortgage Calculator.
So if we go to, I guess I wouldcall it our status totem pole,
right?
Uh, at the top of the totempole, you have the, uh, full us
citizen, um, either naturalizedcitizen or born here.
You're still a citizen belowthat you have the permanent

(07:07):
resident aliens, right?
They have their green card.
allowed to permanently reside inthe U.
S., do not have theircitizenship yet, but, um, able
to qualify for all the sameprograms that U.
S.
citizens can qualify for.
And then you have your nonpermanent resident aliens,
right?
Non permanent resident aliensare, um, Are individuals living

(07:32):
in the U.
S.
Uh, typically the now here'swhere we have a distinction,
right?
Because the non permanentresident alien, you're basically
going to be able to put him intwo different categories when
you're trying to structure yourloans.
One is an actual non permanentresident alien that is residing
legally In the United States hastheir status to be here through,

(07:55):
uh, some type of visa or sometype of asylum from immigration,
but they are legally residing inthe U S and they have an
employment authorizationdocument.
Be it a work permit.
Maybe they have an E2 visa thatallows them to own a business
and manage their business here,which would be working.
And then we have our ITINborrowers right now.

(08:18):
ITIN stands for IndividualTaxpayer Identification Number.
Our ITIN borrower is residingfull time in the United States,
working Or should I say derivingtheir income solely from the
United States, but they do nothave legal status like a typical

(08:42):
non permanent resident aliendoes.
However, when you arestructuring your loan and
looking for options in thepricing engines, You would put
your borrower in the nonpermanent resident alien
category to be able to get yourpricing options, but to be aware
that they are, they are an I 10borrower simply means they have

(09:04):
the I 10 document in order to beable to file tax returns.
Um, so there are, Multipleincome streams for the item
borrower from full dock 1099.
Um, bank statement, P and L andeven DSCR.
But just be aware.
W two full dock is probably notthe option that would be

(09:26):
applicable for your borrowerbecause to be a W two borrower.
They have to have a socialsecurity number for the W 2
document to be able to begenerated because that is taxes
that are being deducted for, uh,stuff like social security,
federal income tax, andMedicare, since they don't have
their full status here as eitheras a non permanent resident

(09:48):
alien, nor as a permanentresident, they do not have a
social security number.
They're going to have an.
i10.
So let's get into our optionshere now, now that we understand
what we're dealing with.
Our first option here is for afull dock i10 primary purchase.
80 percent LTV is the highestLTV, so that's 20 percent down.

(10:11):
And we're looking at 8.
375, excuse me, 8.
375.
at par and you can buy that downall the way to 7.
124 which is a cost of 2.
5 points.
Our next option is ourinvestment purchase.
Now the other one was a primary.

(10:32):
This one is investment also 80percent LTV which is great news.
This one is full dock.
And you're looking at 8.49, ourlowest cost option at par, and
you can buy that down all theway to 6.49 at a cost of 3.5
points.
Now, here's where it getsinteresting for the I 10

(10:52):
borrowers.
Now we have an IT 10 bankstatement investment purchase,
and again, great news, 80% LTVmaximum LTV for this option.
8.75 is our lowest cost optionat a cost of 0.25 points, and
you can buy that down all theway to 6.75% at a cost of 3.375

(11:20):
points Now.
Here's where it gets reallyinteresting.
We actually have an ITIN DSCRpurchase option, 80 percent LTV.
Yes, folks.
That is not a typo.
I triple confirmed that 80percent LTV for our ITIN

(11:42):
borrower.
8.
624 is our lowest cost option atpar.
And you can buy that down allthe way down to 7.
374.
Absolutely amazing.
And now for some cash outoptions.
Hold up a second here.

(12:04):
All right.
We're frozen there for a second.
So some cash out options here.
75 percent LTV is our maximumLTV for this option.
8.
75 is our lowest cost option.
And we can buy this down all theway to 6.
625.

(12:26):
Absolutely amazing.
And saving the best for last,our ITIN DSCR investment cash
out at 70 percent LTV, which isthe maximum LTV for our ITIN
borrower using DSCR.
You're looking at 7.
875, our lowest cost option atpar, and you're going to buy

(12:50):
that down all the way to anastounding 6.
25 percent at a cost of 3.
225 points.
So we're definitely seeing the I10, um, Secondary market open up
here, especially for DSCR.
Amazing.
High LTV.
80 percent was not availablepreviously for an ITIN borrower.

(13:12):
So definitely look to themortgage calculator for all your
ITIN borrower loans.
All right.
I do not see any questions.
Definitely great programs there.
So no questions.
So I think we'll go ahead andwrap it up.
Remember that we do this show at11 a.
m.
Eastern every weekday where wego through our live rates and
then do a deep dive intodifferent loan types.

(13:33):
We'll have a new loan type foryou tomorrow.
Thank you everybody for tuningin.
We'll see you tomorrow at 11 a.
m.
Eastern for the next episode ofDaily Rates Live with the
Mortgage Calculator.