Daily Mortgage Rates LIVE - 10/07/2024 - Bank Statement Loans

In this episode of "Daily Mortgage Rates LIVE," we uncover the untapped potential of Bank Statement Loans—an unconventional yet powerful financing option for self-employed individuals and business owners.

Tired of traditional loan applications rejecting you due to fluctuating income? Bank Statement Loans could be the answer. Join our expert hosts as they dive deep into how this unique mortgage option works, who can benefit most from it, and the steps to qualify even without a traditional proof of income.

📄 What are Bank Statement Loans, and how do they differ from conventional mortgages?
🏠 Who are they best suited for?
💡 What are the key benefits, and are there any risks to be mindful of?

Discover why more self-employed professionals are turning to this flexible solution to buy their dream homes or refinance existing mortgages.

If you’re a small business owner, freelancer, or simply looking for a creative financing option that works with your income realities, this episode is a must-listen. Tune in to "Daily Mortgage Rates LIVE" and find out if Bank Statement Loans are the key to unlocking your next big opportunity!

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

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 Statem

Episode Transcript

Restream recording Oct 07, 2 (00:00):
So welcome everyone.
My name is Kyle Hiersche I'm thecoo of the mortgage calculator
joined here by our presidentNick Hiersche and our cso jose
gonzalez We are a lender thatspecializes in non qm loans and
what we do every weekday at 11a.
m Eastern on this show is gothrough our actual live mortgage
rates Then we do a deep diveinto a different loan type.
And again, today's loan type isgoing to be bank statement

(00:22):
loans.
So we'll turn it over to Josehere in a little bit to go over
those.
But first let's talk about therates for today.
So Nick, if you're ready, let'sgo ahead and pull up today's
rates.
All right.
So not so great news.
The last, uh, few days forrates, but, uh, still at one

(00:44):
year lows here.
So we will compare all theprograms.
Today is Monday.
October 7th, just after 11 a.
m.
So all of our standard programshave their initial rate sheets
for today.
And we'll compare the APR acrossprograms.
If you'd like a full breakdownand itemized loan estimate that
itemizes all the fees that gointo the APR, please get with
our team members.
They'd be happy to send thatover.

(01:04):
For the demo, as we do everyday, we set up a standard
scenario, single family home,500, 000 purchase, 400, 000 loan
amount, corresponds to 80percent loan, 20 percent down
payment.
And we just estimated at 760FICO credit score and an
estimated 40 percent debt toincome ratio.
So with those settings, let mego ahead and share my screen

(01:28):
here and check out the rates fortoday.
So first up is our 30 year fixconventional for a primary home.
This is the most common optionpeople think of when they think
of a mortgage rates coming intoday at 6.
00 final APR 6.
324 with all of the feesincluded.

(01:48):
Okay.
And if for any reason ourcustomer doesn't qualify for a
conventional option, youtypically want to quote an FHA
option to compare.
FHA allows more leniency oncredit issues and a higher
overall debt to income ratio,but it does require upfront and
yearly mortgage insurance.
Rates today, 5.
25.
Final APR with all the fees andmortgage insurance, 6.

(02:09):
145.
So notice when our customerqualifies for both, they may
want to consider FHA, it couldbe a touch cheaper, but does
require that yearly mortgageinsurance.
And if our customer needs to useFHA, definitely a great option.
Moving on to our VA for oureligible service members and
veterans.

(02:29):
If you are eligible, theseprograms are amazing.
Rates as low as 5.25, final A PR5.542 with a standard funding
fee here.
And when we compare across theother programs, VA's obviously
going to be the best option.
Much lower overall.
A PR, definitely a benefit for.
Our veterans and servicemembers.
And the final option that everybanker, lender has is USDA, only

(02:51):
for properties in the ruralareas of the country, USDA,
eligible areas.
If the property's eligible andour borrower's eligible, this is
a great option to compare ratestoday, 5.25, final a PR with all
the fees, 5.984.
So we compare that to FHA.
It will be a touch cheaper forour customers shopping in those
areas.
So definitely look to USDA forthat.
And obviously a touch cheaperthan conventional as well.

(03:12):
And that rounds up the standardoptions that every bank or
lender has.
But if our customer doesn'tqualify with any of the four
standard options, many banks orlenders have to deny them.
That's where we love to come inwith our 5, 000 additional loan
programs.
First up, our 30 year fixed nonQM option for primary home.
So if our borrower doesn'tqualify for conventional or FHA
using tax returns, et cetera,standard documentation.

(03:35):
We can switch to alternativedocs such as bank statements,
our topic for today, uh, 1099s,asset related, PNLs, all kinds
of different options.
Today's option for a bankstatement comes in at 6.
125, final IPR 6.
450.
Very close to conventionaltoday, almost identical,
absolutely amazing.
Our customers just switched toalternative docs without much

(03:56):
more cost there.
So great option.
And we have tons of options forinvestment properties.
So, our non QM AltDoc option foran investment property comes in
today 6.
625 for a bank statement option.
Final APR 6.
964 and we'll compare that tothe other investment property
options here.

(04:20):
First up is our conventionaloption.
There are no government options,so no USDA, FHA, or VA, but
conventional comes in 6.
5 rate.
Final APR 6.
825.
And we'll compare that to ourfavorite option, our DSCR, no
income or employment informationneeded from a borrower.
We simply use the estimatedrents from the appraisal to

(04:41):
determine a DSCR ratio.
If the estimated rents aregreater than the estimated
expenses, That's a ratio of oneor higher AKA.
The property will cash flow,which is preferred, and with a
three year prepayment penalty,which is standard rates today
coming in 6.375, file a P 6.682beating conventional.
That's amazing.
And we can even add a five yearprepayment penalty to some

(05:02):
options.
Rates as oh 6.125 IAPR, 6.45,uh, 4 2 5, which beats
conventional as well.
And the final DSCR we present onthis show is our no prepayment
penalty option, which somestates don't allow.
Rates come today, 6.
65.
Finally PR, 6.
964.
So a touch above conventional.
I still say a hundred percent ofinvestors prefer DSCR to

(05:24):
conventional, even at a highercost.
So this is a great option, butif you can add a prepayment
penalty, the three and fiveyears are even better.
And our final options we gothrough every day on the live
demo, our new programs are 30year fixed second mortgages.
These are alternative to HELOCs,which is typically the only
option for our customer to get asecond mortgage and not have to

(05:45):
adjust their first mortgage orrefinance their first mortgage
because they have lower ratesthan what we can see today.
So to get cash out still out ofthe property without using a
HELOC, we can use a fixed ratesecond mortgage for a primary
home, which is those 8.
499, much lower than HELOC finalAPR 8.
943.
And our investors can use thesame option.
He locks are very rare forinvestment properties.

(06:06):
So this 30th fixed secondmortgage is great.
Rate as low as 9.
375 final APR 9.
716.
And these are both non QMprograms, so we can use bank
statements, 1099s, assetrelated, etc.
Let's switch into today's topic.
So since we do our live demo, wehave thousands of programs and

(06:28):
options and variations underthese large categories.
So thankfully, Jose will gothrough our favorite non QM alt.
category of bank statements, themost popular, uh, and show some
of these specific options sincewe only see one option every day
on the live demo.
Now, there are all kinds ofvariations.
And things to consider whenwe're going through these
options.
So Jose, let's check out ourbest bank statement options

(06:50):
today.
Good morning, everybody.
Thank you for joining us forDaily Mortgage Race Live with
the Mortgage Calculator.
Bank statement loans are for ourself employed borrowers.
We recently went over the 1099borrower loans.
Remember those?
That those let us use 90 percentof the face value of the 1099.
Uh, bank statement loans are alittle bit different.
There is an expense factorinvolved.

(07:13):
It could be anywhere from 20%,meaning you will receive 80
percent of the deposits asincome, and the expense factor
could go as high as 60, 70, andeven 80%, depending on if it's a
business that has a businessmodel with a lot of overhead, a
lot of employees, a lot of fixedexpenses, a lot of machinery.

(07:33):
That business would obviouslyhave a higher expense factor and
you would be able to attain lessof the deposits as income to our
options today for bank statementoptions for primary purchases
and investment properties.
As with all non QM loans,maximum loan to value is 90%.

(07:57):
So the minimum down payment is10 percent for our primary
option here.
Lowest cost option is 8.
25 at par, and you can buy thatdown all the way to 7.
5 percent for our 10 percentdown primary purchase option
using bank statements for aninvestment property purchase.

(08:21):
15 percent down is the minimumdown payment.
So you will be at 85 percentloan to value.
8.
374 is our lowest cost option,and you can buy that down all
the way to 6.
999 percent for our 85 percentLTV investment purchase using

(08:47):
bank statements.
And now for our lower creditscore borrowers, 600 is the
minimum credit score for thisoption.
Uh, 80 percent LTV is stillpossible even with only a 600
credit score, which is amazing.
10.
625 is our lowest cost option atpar and you can buy that down

(09:15):
all the way to 8.
999 at a cost of 3.
375 points for our 600 creditscore, 20 percent down
investment property.
That is possible also forprimary residences.
Also 80%.
And now for some cash outoptions, 80% LTV max.

(09:37):
Here we are looking at, let'sgive you the lowest cost option
is 7.625 at par, and you can buythat down all the way to 6.499
and a cost of 2.5 points and ourinvestment.

(10:00):
Cash out refinance, 80 percentLTV.
Our lowest cost option is 7.
625 at par.
And you can buy that down allthe way to 6.
25.
Wow! At a cost of 3.
25 points.
And our last option here is ourlow credit score option.

(10:24):
Again, minimum 600 credit scorefor this option.
Uh, 75 percent LTV is themaximum at this credit score for
the cash out refi and our lowestcost option is 10.
875 at par and you can Writethat down all the way to 9.

(10:51):
2.
We have load with a 600 creditscore.
Many great options here for ourbank statement loan.
So please do look to themortgage calculator for all of
your bank statements.
All right.
I do not see any questions.

(11:14):
So I think we'll go ahead andwrap it up.
But again, probably the most,uh, well, definitely the most
popular non QM loan out there.
So definitely for loan officers,something to make sure you're
very familiar with because it'sgoing to come up, but thank you
everybody for tuning in.
Remember, Oh, hold on.
We do have a, uh, question thatjust came in.
Question is for the LTV at 90percent for the primary
purchases.

(11:34):
There are minimum credits, uh,depending on the investor you're
looking at anywhere from 700 toa seven 20.
Definitely 700 minimum, you'renot going to have anything below
a 700 reach 90 percent LTV.
All right.
Okay, well, let's go ahead andwrap it up then remember that we

(11:55):
do this show at 11am Easternevery weekday where we go
through our live rates and thendo it next.
So we'll be back tomorrow with anew loan type.
We'll see you tomorrow 11amEastern for the next episode of
daily rates live with themortgage calculator.