All Forum Posts by: Kevin Martini

The non-QM market is constantly changing, and DSCR loans are a part of this non-QM category. A few months back, some (but not all) of my investors eliminated the cash-out seasoning requirements for DSCR. Those without seasoning for cash-out are utilizing LTR, and at 65%, no ratio is mandated. I understand this doesn't reach the 75% mark, but it's worth noting that this product is newly available and gaining traction. I anticipate that the no-seasoning DSCR will soon accommodate STR. However, I'm concerned that this change might not be timely enough for your immediate needs.

@Laura Siclari in response to your question, I am a Certified Mortgage Advisor with a primary focus on North Carolina, although I assist individuals and families throughout the US, including South Carolina. In the Southeastern US, only North Carolina and South Carolina recognize the concept of Due Diligence (DD). However, it's crucial to note that both the amount and duration of DD are entirely negotiable. What I want to emphasize is that even though NC and SC have this distinct DD feature, it shouldn't deter you. The proposed DD amount can range from zero to $100, or even $100,000. It's all up for negotiation. I can confirm that while many contracts include a DD fee, not all of them do.

This reminds me of a chat I had with a family just a few days ago. For some context, I believe that mortgage rates operate in cycles. So, it's not a question of 'if' but rather 'when' they will decrease. Here's an interesting tidbit: in the recent history of the U.S., we've experienced 6 recessions. During these times, mortgage rates typically drop by more than 2% from their highest to lowest point. In line with this, the Mortgage Bankers Association's latest predictions suggest that by 2025, rates might begin with a 5.

With this said, buying points on a mortgage transaction to permanently buy the rate down is like putting brand-new tires on a car the day you trade it in.