Mortgage Rates Finally Below 7% and Surprisingly Cheap DSCR Loans

Mortgage rates have recently seen a much-awaited dip as some primary residence loans finally fall below the seven-percent threshold. This is good news for everyday homebuyers and real estate investors like you, as it could mean lower investment property loan interest rates and better cash flow for your next rental property. Which loans are seeing the lowest mortgage rates, and are there any opportunities worth taking advantage of with investor-only loans? We’re getting into it on this Mortgage Monday.

If you’ve been looking at DSCR loans (the loans that DON’T require you to have a W2), we have some good news. Strangely-low DSCR mortgage rates have started to surface, making now a phenomenal time to lock down your next deal. How low are these rates, and why are they so far under the average of where they should be? Christian and David will explain it all, plus give you an interest rate update for VA, FHA, primary, second home, investment property, DSCR, and bridge loans...AND HELOCs (home equity line of credit)!

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00:00 Mortgage Rate Update!
00:44 Sponsor: Rent App!
02:12 FHA and VA Loans
04:44 Conventional and Primary Home Loans
08:19 Second Home Loans
10:58 Investment Property Loans
12:00 DSCR Loans
15:32 Bridge Loans
16:15 HELOCs (Home Equity Line of Credit)

[lambohayden]

Great video! I've got a question about the second mortgage loan that you mentioned in the video. I currently have 2 properties categorized as primary and second home, with my 2nd home purchased 6 months ago. After 1 year, if I want to get a 3rd mortgage, am I able to tell the lender that I want to categorize my 2nd home as an investment property and to get a 3rd mortgage as a second home loan?

[danielmoss]

Does having a DSCR loan on a property affect your DTI ratio if applying for another “traditional” loan/ mortgage? Or does it not impact DTI at all?

[phil]

What about commercial loan products that are readily available to investors? You can get commercial loan products for single-family rentals that make more sense than other products.

[tylerhenderson]

If I rent out a sfh primary using a 1 year signed lease and the home is under a conventional loan when I move into a new primary … As a loan officer do count that lease as income ?. Or does it lower your debt to income?

[anniebetsy]

I would love to do house hacking. I have a 4 / 3 home and live alone. But I had a bad experience with a tenant who was referred by a friend. She didn’t pay rent and she stole several items that wasn’t discovered until weeks later.
How do you find good tenants?

[mosqutio]

At 6.5% interest rate, 30 year term on a conventional loan, it’s still difficult to yield 8%+ COC ROI in the Ohio market. 😂

[jimmyreynolds]

Rough for everyone the past 4 years. Trump 2024 !