Traditional/Conventional

DSCR

Fix and flip loans

Rates staying flat!

Mortgage rates improved to the best levels seen in months last week. On Wednesday we saw improvement after the Fed left its policy rate unchanged, but opened the door to rate cuts starting at the next meeting in September. On Friday labor market data showed a jump in unemployment and much fewer new jobs created than was expected, which all but guaranteed the Fed will start cutting at the next meeting.

This week will likely see mortgage rates pull back after dropping more than was expected last week. Although there is not a lot of economic data this week, markets have shown a major overreaction to last week’s data. Stocks have plummeted, and traders now believe the Fed will be forced to make bigger and more frequent rate cuts to save the economy from a deep recession. Mortgage rates have moved lower too quickly, which often is followed by a rebound and moves higher.

What’s affecting rates this week:

Market volatility: Lenders will struggle to maintain stability with mortgage rates this week as markets whipsaw.

The Fed: Fed cuts: Markets now pricing in large Fed rate cuts to come, much larger than were considered only a week ago

DSCR Loans

Best Rate at 60% LTV: 6.25% to 6.875%

Best Rate at 70% LTV: 6.625% to 7%

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: 5.875% to 6.25%

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 5th, 2024