Investor loan conventional financing rates post 4/1

[Kris Mead]

Has anyone gone for financing post 4/1? I just went for a pre-qual letter from one of my lenders and he said he was getting quotes at 6.5% for a 30 year conventional earlier in the day for another client and he couldn’t even lock it. He said it seems like they are trying to price investors out of the market. Anyone else seeing this?

I’m expecting higher rates, but 6.5 is madness.

[Stephanie P.]

@Kris Mead

@Jared Rine is right. Many Fannie lenders are pricing themselves out because they don't want to hit that newly imposed 7% threshold. Conversely, DSCR rates are in the 4's for many borrowers; no income verification means no tax returns, no paystubs, no profit and loss statements and cash out to 75%. Not a bad way to go.

Stephanie