Traditional/Conventional

DSCR

Fix and flip loans

Rates getting better!

Unfortunately our forecast for last week was correct, rates moved higher for the week after dropping more than expected when markets overreacted to the previous week’s weak jobs data. The good news was that the moves higher weren’t large and rates are still better than in July.

After moving higher last week, rates could settle down and even improve a little bit if this week’s inflation data shows inflation is still cooling, because it would support the Fed cutting policy rates at the September meeting. Mortgage rates will move lower in anticipation of future Fed rate cuts.

What’s affecting rates this week:

Inflation data: Wholesale inflation data on Tuesday will have some effect on rates this week, but it is Wednesday’s consumer inflation data that will cause the biggest moves. Consumer inflation is expected to be slightly higher month-to-month than last month’s readings, but should still be showing year-over-year inflation at a slower pace which would help mortgage rates move at least slightly lower.
Fed rate cuts: Markets are now pricing in smaller policy rate cuts to start in September, after overreacting the previous week.

DSCR Loans

Best Rate at 60% LTV: 6.25% to 6.5%

Best Rate at 70% LTV: 6.5% to 6.875%

Best Rate at 80% LTV: 6.875% to 7.375%

Highest LTV: 85% (purchase + rate and term)

Lowest FICO score: 620

Smallest Loan: $65,000

Largest Loan: $20mm (large portfolios)

Vacant Properties: 75%

Short-Term Rentals: 80% (purchase + rate and term)

Best rates are based on 780+ credit score, DSCR above 1.15, loans over $300k and in major cities. We have 20+ of the best DSCR loan buyers at our fingertips and can help with most clients’ needs.

No Ratio Loans

Highest LTV: 75% (Purchase + rate and term)

No ratio loans are loans that do not require a rental agreement or have negative cash flow.

Conventional Loans

Owner Occupied: 5.75% to 6%

Non-Owner Occupied: Low 6.5 to 7%

Conventional loan rates powered by TNS Loans NMLS #1719349 on properties in Colorado. If you want specific rates, reach out to TNS Loans via email at MB@TNSLoans.com.

Private Loans

Small Loans and Lenders (.5 – 3 Points): 9.5% – 12%

Large Lenders (15% down + 1 point + closing costs): 9.25 – 11%

Highest LTV 100% of full project up to 72.5% ARV

Lowest FICO score: Mid 500’s with good credit last 12 months

Smallest loan: $10k

Business Credit Cards

0% for up to 18 months

Options for business 3 months plus in business

Credit usage loans available to increase score to qualify for business credit cards

HELOCS

RENTAL HELOCS to 80%. Fixed and adjustable.

Don’t forget to grab a copy of your personal Investor Mortgage Report here!

What are the best loan products for where you are at now and where you are going.

Keep up as rates get better and requirements become easier.

Investor Mortgage Report – Week of August 12th, 2024