All Forum Posts by: Zach Wain

JD - and with higher wages comes increased consumer demand which leads to higher prices/inflation.  This really is an economic pickle.  A severe reduction in gov't spending is the only path I see.  That, or an actual recession that causes people to take money out of equities and into the safe haven of bonds...

All of the mortgage rate forecasts are probably a little dated and the next time they update the projections will go up.  With a GOP sweep, everyone was predicting that would be bad for rates.  If spending cuts are not enough to pay for big tax cuts that will make the deficit worse, and possible tariffs/price increases.

Lets hope Elon and Vivek and have a monumental reduction in Gov't spending.  Lets debt = less Treasury issuance = less supply = lower yields

The market is in an wait and see mode.  But, when 1 party has a clean sweep that means a lot of legislation gets passed, and that spokes the markets.  

100% what Luis said. Self Sufficiency test is the important item for 3-4 unit FHA homes. If you make enough money to qualify without counting any rents, no worries. If you need rents, good luck. It is tough to pass the Self Sufficiency test right now. Conventional is a great option in those scenarios

Any lender with multiple outlets will be able to help you. VA rates have come down a lot the past few months so you should be able to snag a good deal

No this is not normal. But, the most common problem with DSCR loans is when the DSCR ratio changes from the loan officers initial estimate. If they thought the property cash flows $3,000 per month on a $2700 payment but the rent comps come back at $2,600 per month that changes EVERYTHING in the DSCR pricing world. The loan officer must have made a pricing mistake somewhere in the process.

HELOC!

We had a LOW inflation report today (7/11/24), big win!! Today's low CPI inflation report helped bring mortgage rates and bond yields lower. Headline (total) inflation for the past month was negative, -0.1%.

Core inflation (total inflation minus food and energy) was up only 0.065%, so it gets rounded to 0.1% increase. That is a great number and bond markets love it. This should open the door for the Fed to hopefully consider a couple of rate cuts this year.

We also had the lowest "shelter" reading in a long long time, of 0.3% for rents and OER. Total Shelter was 0.2% because lodging away from home dropped.

One item that is still sky rocketing, auto insurance! 19.5% increase in the past 12 months. Ouch!

This is the 3 month downtrend we have been on.  This is a 10 yr treasury chart over the past 3-4 months.  Mortgage rates do not perfectly move with the 10yr T, but its pretty dang close.  It has been slow moving trend, with ups and downs, but its encouraging to see a stable downtrend.  In mortgage rate/bond world, the next set of economic reports (Jobs, inflation, retail sales, etc) can always change the picture quickly.  But, with shelter inflation (hopefully) on the downtrend, that should help keep inflation readings low.  Hopefully, lower rates are in the near future...

Option 2.  The odds of that an engineer will say its perfectly up to code and it requires no changes is probably pretty low.  Have an architect look at the unit, and draft up plans exactly the way it is but they will likely give you a couple things that needs to be changed for it to be up to code.  Then you submit plans to city, they may reject them and make a coupe more changes.  Then you complete the changes and you are good to go.

Considering most homes will not cash flow with 20% or less down, plan on 20% and most likely 25% down required - depending on the cash flow expectations.  If you can go conventional, go that route first.

@Deepack Kris - Reach out to Angelo at https://lendwithleverage.com/

Angelo is a great Broker in NC, I have known him for years.  He does great work!