Mortgage Brokers - What's still moving with investors?

Question

Hey folks,

Quick question for any mortgage brokers in here - what’s still working on the investor side right now? I’m hearing DSCR is holding up okay in certain markets, RTL is hit or miss depending on deal quality, and a lot of builders are jumping into ground-up.

Are you seeing more volume in any of these lanes? Curious which loan types and markets are actually moving right now. Just trying to get a read from those in the trenches.

Appreciate any insight.

Erik Estrada · Answer

Looking at a lot of maturing bridge loan refinances right now and cash outs.

Chris Seveney · Answer

Very area specific, still seeing a lot of deals coming our way on DSCR and on the RTL, but very market dependent.

Jason Wray · Answer

Zach,

I am not a broker but I am a Mortgage banker and to be honest applications are up 50% right now. Primary home rates are down especially on FHA/VA as well as DSCR and other Non/QM programs. I am seeing a growing trend in both Self-Employed Bank Statement programs and the (1 Year 1099) programs.

All in all investment purchases are very healthy and considering mortgage rates broke last month and had a small climb indicates that as soon as th 10 Year treasury break back below 3.99% rates will follow. I see a lot of investors going with 5 YR ARMS and 7 YR ARMS and going with an I/O interest Only options to help the initial cash flow.

DSCR rates are very attractive right now and offer a great way for self employed borrowers, retired borrowers, or people who have a ton of cash and no job a way to buy an investment rental. Coming is not so far behind "Asset lending program" is also becoming popular with Crypto investors, and retiree's.

VA 100% is strong and rates are in the mid to high 5's along with VA Construction loans. There are a lot of Military members and Veterans that have not used their DD-214 or even know they can buy a home with Zero down.

It also comes down to who you work for and if its a lender how bad are the overlays and do you have lean pricing without too much margin built in for the branch managers and corporate! I worked and owned many branches back from 2006 to 2017 and it was a very tough to sell higher rates so I joined an FDIC Bank. Being FDIC & "Fully Delegated" with No Overlays also helps offer more programs and better rates.

Mortgage Brokers - What's still moving with investors?

Mortgage Brokers - What's still moving with investors?

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