In this insightful episode of Daily Mortgage Rates Live, we’re tackling an important yet often overlooked topic in the mortgage world—ITIN Borrower Loans. These loans cater to individuals who lack a Social Security Number but hold an Individual Taxpayer Identification Number (ITIN), offering a critical pathway to homeownership for non-U.S. citizens.
We'll break down everything you need to know about ITIN loans, starting with who qualifies, the documentation needed, and how the application process differs from traditional mortgages. Are you curious about the credit and income requirements? What about the challenges and potential benefits for lenders and borrowers alike? We’ve got it all covered. Whether you're a lender looking to expand your offerings or an ITIN borrower exploring your home loan options, this episode provides essential insights.
Don’t miss this opportunity to learn how ITIN loans can help bridge the gap in the mortgage market and help more people achieve their dreams of owning a home!
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
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 Mortga
Episode Transcript
So welcome everyone.
(00:00):
My name is Kyle Hiersche.
I am the COO of The MortgageCalculator, joined here by our
president of Nick Hiersche andour CSO, Jose Gonzalez.
We are a lender that specializesin non QM loans and what we do
every week.
day at 11 a.
m.
Eastern on this show.
Let's go through our actual liverates.
Then we do a deep dive into adifferent loan type.
But today's loan topic is goingto be I 10 borrower loan.
(00:21):
So Jose will take us throughsome different options for that
here shortly.
But first we will look attoday's actual mortgage rates.
So Nick, you are ready.
Let's see what the rates arelooking like this morning.
All right.
So as usual, we will check outthe rates for this morning.
(00:41):
It is just after 11 a.
m.
Eastern, so all of our standardprograms have their initial rate
sheets for today.
We'll set up a standard scenarioand compare the APR across the
programs.
If you'd like a full itemizedloan estimate, for example, the
fees that go to the APR, pleaseget with one of our team
members, we'd be happy to helpyou out.
For our scenario, as we do everymorning, we'll set up a standard
setup here, single unit, singlefamily home, a 500, 000 purchase
(01:05):
price, 400, 000 loan amount thatcorresponds to 80 percent loan
to value, 20 percent downpayment.
We use a 760 FICO credit scoreand an estimated 40 percent debt
to income ratio.
So with those settings, let'scheck out the rates today.
(01:25):
So the first option that wetypically look at is our 30 year
fix conventional for a primaryhome.
That's the most common optionpeople think of when they think
of a mortgage.
Rates today coming in at 6.
124%, final APR 6.
427, about the same as it waslast week.
And if for any reason ourcustomer doesn't qualify for a
standard conventional option, wetypically want to compare an FHA
(01:46):
option.
FHA allows more leniency oncredit issues and a much higher
overall debt to income ratio,but does require upfront and
yearly mortgage insurance.
Rates for FHA today coming in at5.
25, final APR 6.
193.
So if our customer qualifies forboth, they may want to look at
FHA if they're willing to do themonthly mortgage insurance.
Our customers that need to useit.
(02:06):
Definitely very comparable hereto our standard options.
And moving on to our VA, VA isonly for eligible active service
members and vets.
If you are eligible, theseprograms are amazing.
It's as low as 5.
5 on the PR 5.
798 with a standard funding fee.
(02:26):
So definitely lower than theother options.
So our VA eligible borrowersdefinitely take advantage.
And the final standard optionhere, USDA is only for
properties in USDA eligibleareas of the country, properties
eligible and our customerseligible.
These are great options toconsider.
Today is rated as low as 5.
(02:47):
5, final APR 6.
242 with all the fees included,touch higher than FHA today.
Typically it'll be a touchlower, so that should adjust.
And it is a touch lower thanconventional.
So our customers looking inthose rural areas, definitely
consider the USDA option.
And that rounds out the standardoptions that every banker lender
has.
And if a customer doesn'tqualify, unfortunately, most
(03:07):
banks or lenders have to denythem.
But that's where we love tostart presenting our alternative
options, starting with our nonQM called DOC or a primary home.
So if our customer doesn'tqualify with conventional or FHA
required documents, two yearstack returns, et cetera, needs
to use alternativedocumentation, we can switch to
this option, use bankstatements, 1099s, P& Ls, asset
(03:29):
related options, all kinds ofdifferent variations.
Rates as low as 6.
25 today for a bank statementoption, final APR at 6.
578.
So just a touch aboveconventional, uh, so for our
customer to switch fromconventional to using
alternative docs, almostidentical price there, which is
amazing.
And moving on to our otheroptions for investment
(03:49):
properties.
First up our non QML docoptions.
So again, a bank statement orsimilar rates coming in at 6.
999, final APR there, 7.
415.
And we'll compare that to ourother investment options.
First up is our 30 year fixedconventional option.
Remember, there are nogovernment options, so no USDA,
(04:13):
for an investment property, butwe do have our conventional
option coming in today, 6.
8758.
Finally, we are 7.
211, which is a little lowerthan our Altoc option, but
definitely not lower than ourGSCR option, our favorite loan
type for investment properties.
No income is needed.
No employment information isneeded from our borrowers.
(04:33):
We simply use the estimatedrental income from the property
to determine a DSCR ratio.
If the estimated rents can coverthe estimated expenses, that is
a ratio of one or higher.
If the ratio is one or higherand there is a three year pre
payment added, we have rates aslow as 6.
499 today.
Final APR 6.
809.
Absolutely amazing.
(04:54):
Beating conventional by quite abit today.
And we can even add a five yearprepayment penalty for some of
our options.
Rates today coming at 6.
375.
Final APR 6.
682.
Definitely better thanconventional.
And our final DSCR option is anoption with no prepayment
penalty.
Rates as low as 7%.
Final APR 7.
298.
Just a touch above conventional,but I'd still say, um, pretty
(05:16):
much 100 percent of investorswould prefer a DSCR option, even
at much higher costs.
And these are almost identical.
So pretty amazing there.
And the final two options wealways want to talk about.
are 30 year fixed secondmortgage options.
So these are alternatives to aHELOC.
Many borrowers have a firstmortgage that is lower than what
you see here.
Want to keep that first mortgagein place, but still get access
(05:37):
to cash.
We can do a cash out with a 30year fixed second mortgage on a
primary home.
It's as low as 8%.
Final APR 8.
370, much lower rate than aHELOC and obviously fixed as
compared to adjustable.
And we can do the same thing forinvestment properties.
30 year fixed second mortgagefor investments.
Rates as low as 9.375 to getthat cash out.
(05:58):
Final a PR 9.731.
So those are our standardoptions we go over every
morning.
But let's go ahead and switchinto today's topic where Jose's
gonna take us into our I 10options.
So.
Uh, when we do our live show, wehave a standard, uh, you know,
citizen option.
These are the standard optionsfor everybody.
(06:19):
Uh, Jose will go into thespecific options for different
types, which we can'tnecessarily do on the live rate
demo.
So was I first explained whatexactly we're talking about for
item borrowers?
And then let's check out our.
Examples.
Good morning, everybody.
Thank you for joining us fordaily mortgage rates live with
the mortgage calculator.
And I 10 borrower is a nonpermanent resident alien that
(06:41):
does not have legal status inthe U.
S.
But is living full time in theU.
S.
And also working full time inthe U.
S.
deriving their income from theU.
S.
The item borrower for an itemborrower loan is also required
to have U.
S.
Based credit.
So due to all the U.
(07:02):
S.
Based Requirements.
The I 10 borrower is definitelynot a foreign national borrower,
even though they both share thefact that neither has legal U.
S.
status to live permanently inthe U.
S.
So let's go ahead and share theI 10 options that we have today.
(07:22):
The I 10 borrower is required tohave the I 10 document approved.
or the ITIN number in order tobe able to qualify for this
loan.
Let me see if I can make it alittle bit bigger for you all
there.
Our first option here is, uh,the full doc primary purchase
for the item borrower, 85percent LTV is the maximum LTV.
(07:48):
8.
375 is our lowest cost option ata cost of 1.
125 points.
And you can buy that down allthe way to 7.
875 for our full doc primarypurchase with 15 percent down
for item borrower.
Our next option is for ourinvestment purchase by an ITIN
(08:13):
borrower.
The LTV does drop here to 80percent maximum.
7.
499 is our lowest cost optionand 6.
499 is our lowest rate option.
And now for our next option isour low credit score option for
(08:35):
ITIN.
660 is the minimum credit scorefor this option, the ITIN
borrower.
8.
875 is our lowest cost option at1.
375.
And you can buy that down allthe way to 7.
999 at a cost of 3.
125.
And this is for an investmentpurchase at 80 percent LTV for
(08:58):
our I 10 borrower.
And now for some cash outoptions here, I wanted to go a
little bit outside the box hereagain.
Our I 10 bank statement, primaryrefinance, maximum 80 percent
LTV for this option.
7.
999 lowest LTV.
(09:19):
Cost option at 1.375 points, andyou can buy that down all the
way to 7.375 at a cost of 2.5points.
for our primary bank statementoption.
And now we have our investmentbank statement cash out option
and great news.
We are still at 80 percent LTV,even though we switched over to
(09:43):
investment.
7.
999 is our lowest cost option ata cost of 1.
375 points.
And you can buy that down allthe way to 6.
999 at a cost of 3.
25 points.
And our last option here is ourlow credit score option with a
(10:05):
six 60 credit score and greatnews, we can go to 75% LTV for
this I 10 bank statementinvestment property, cash out
refinance.
8.999 is our lowest cost optionat a cost of 1.375 points, and
(10:25):
you can buy that down all theway to 8.125.
at a cost of 3.
375 points for our 660 creditscore, 75 percent LTV investment
property cash out for your ITINborrower.
So great options here for ITINborrowers at the mortgage
calculator, as well as fornationals, non QM and agency
(10:46):
loans.
All right.
Perfect.
Thank you, Jose.
I don't see any questions comingin here, but definitely a great
programs.
And again, not to be confusedwith foreign national, right?
Which are also amazing programs,but just different types.
I don't see any questions still.
So we'll go ahead and wrap itup.
Remember that we do this show at11 a.
(11:07):
m.
Eastern every weekday, where wego through our live rates and
then do a deep dive into adifferent loan type.
So we'll see you all tomorrowwith a new loan type at 11 a.
m.
Eastern for the next episode ofdaily rates, the mortgage
calculator.
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