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TODAY'S RATES
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September 07, 2024 - 10:00 AM
Conventional Loans
Primary: 5.625% APR: 5.628%
Investment: 6.375% APR: 6.453%
Second Home: 6.5% APR: 6.566%
FHA: 5.125% FHA APR: 5.671%
VA: 4.99% VA APR: 5.127%
| Non-QM | |
| No docs (5/6 ARM) | 9.625% APR: 9.932% |
| No docs (30-year fixed) | 9.5% APR: 9.789% |
| DSCR Investment | 7.25% APR: 7.351% |
| Bank Statements | 7.125% APR: 7.105% |
| Foreign LTV 70% | 7.875% APR: 7.980% |
DISCLAIMER: These rates are intended for realtors and loan officers only. For information purposes only and does not constitute a loan approval or commitment to lend. Rates are subject to change without notice.
$300K loan, $400K home value, 30-Yr fixed, Purchase, 720+ score, Single Family Residence, ZIP = 95111
Annotations:
| Program name | Explanation | Best for (borrowers) | Requirements | Note |
| Conventional Loans | Most common loan program for the majority of the American borrowers. First-time buyer can borrower with 3% down. | Look up | ||
| FHA Loans | For bad credit borrowers. The FICO score can be as low as 550. 3.5% minimum down payment. Reduced waiting periods after Bankruptcy, Short Sale, or Foreclosure Lower rates compared to conventional loans but borrower has to pay upfront PMI of 1.75% and monthly PMI. | |||
| VA Loans | Most current and former US Military personel can qualifyed. No down payment and no monthly mortgage insurance. Rates are lower than conventional loans. You can call your VA Administration to ask if you can qualify. | |||
| USDA Loans | For rural area and income cannot be too high. You can look up if a property can be qualified. | Look up | ||
| Jumbo Loans | Home loan that exceeds the loan limits by FHFA, they are non-confirming, strict qualification criteria on FICO, Down payment and DTI. Rate is usually higher than high balance (conventional) | High-cost area where home prices exceed the conforming loan limit. You are looking to purchase a luxury property or a larger home that requires a larger loan amount. | Look up | |
| HELOC | A loan that allows you to borrow against the equity you've built up in your home. Equity is the difference between your home's current market value and the amount you still owe on your mortgage. HELOCs are typically revolving lines of credit, meaning you can borrow money, repay it, and then borrow again as needed, similar to a credit card. | Need Flexible Borrowing: You want access to funds as needed, rather than a lump sum like a home equity loan. Plan to Repay Quickly: If you can repay the borrowed amount during the draw period, you can save on interest costs. Are Comfortable with Variable Interest Rates: Be prepared for potential payment fluctuations if interest rates change. | High Credit score Stable income Low DTI (usually max 43%) Home equity min 15-20% | |
| No Doc Loans | No Doc Loans are a type of mortgage where the lender doesn't verify your income or debt-to-income (DTI) ratio. Instead, they focus on your credit history, assets, and the down payment you can provide. | Who cant go with other programs and still want to buy a primary home | Min FICO 660 Have large down payment at least 20% (can be gifted) Need at least 2 active tradelines more than 12 months 9-24 months of reserves based on LTV and FICO | |
| Investor (DSCR) Loans | Qualify by using Market rent (form 1007), Short term rent (12-month statement) or Rentalizer (AirDNA). No income required. DSCR = Net Operating Income / Total Debt Service | Who want to buy an investment home but not qualify for a conventional loan | 3 tradelines more than 12 months At least 15% down payment (can be gifted) Good credit history | LTV 85% required DSCR > 1.2 LTV 80% required DSCR > 1 LTV 75% required DSCR > 0.75 LTV 70% DSCR = 0 allowed |
| 12 months Bank Statement Loans | A type of mortgage that uses the borrower's bank statements to verify their income, rather than traditional income documentation like W-2s or tax returns. | This makes it a suitable option for self-employed borrowers, business owners, freelancers, and other individuals who may not have standard income documentation. | At least 10% down 3 tradelines more than 12 months | |
| Profit and Loss Loans | Use the borrower's Profit and Loss (P&L) statement to assess their income and ability to repay the loan. | Self-Employed only | 3 tradelines more than 12 months At least 15% down payment (can be gifted) Good credit history Most lender require income deposits at least 75% income on PnL to the bank account | |
| 1099 Loans | A type of mortgage designed for self-employed borrowers or independent contractors who receive income reported on a 1099 tax form. Income is calculated by (income amount x 0.9) dividing by 12. Some lenders allow you to use 100% of the amount. | Independent contractors who receive income reported on a 1099 tax form | 3 tradelines more than 12 months At least 20% down payment (can be gifted) Good credit history | |
| WVOE | This program is for Salary / Wage earner employee for some reason can’t provide W2 and paystub. Need to work for the same employer at least 2 years (1 year is okay but we don’t have much Lender allow that). We use the amount on WVOE (form 1005) as borrower’s income | Salary / Wage earner employee Some Lenders also accept 1099 self employed if they work for the same employer for more than 2 years | 2 years employment history | |
| Foreign National Loans | This program is the same as DSCR. Qualify by using one of following: • Foreign income • Market rent (form 1007) • Short term rent (12-month statement) • Rentalizer (AirDNA) | Foreigner who doesn’t have SSN | International Credit report (if applicable) Foreign income (if go with foreign income) US Bank Account or US LLC Visa (some lenders require US Visa) | Note: All foreign documents must be translated into English by Licensed Translator |
| Assets Depletion / Asset Utilization/ Assets as Atr / Atr in Full | A type of mortgage that allows borrowers to qualify for a loan based on their assets rather than their income. This makes them particularly attractive to high-net-worth individuals, retirees, or those with significant investments who may not have a steady income stream. | Who has a lot of assets in their bank /stocks accounts | 3 tradelines more than 12 months At least 20% down payment (not all lender allow gift fund) Good credit history |
