So welcome everyone. My name is Kyle Hiersche. I'm the COO of the Mortgage Calculator. Joined here by our president, Nick Hiersche and our sales manager, Jose Gonzalez. We are a correspondent lender that specializes in non QM loans, and what we do every morning on the show is go through the live mortgage rates for a few different programs, and then we do a deep dive into a different topic. Today's topic is going to be I 10 low. So our sales manager, Jose, with 28 years of experience as both a loan officer and a realtor, is going to do a deep dive into ITIN loans. Something we're very familiar with here at the mortgage calculator because we specialize in non QM loans. But before we do that, we'll do what we do every morning, which is pull up our pricing tool and look at the rates. So, Nick, if you're ready, let's go ahead and pull up the pricing tool and see what the market is looking like this morning. All right, let me switch my screen and we will check it out. So as Kyle mentioned, this is our pricing tool for our team of mortgage professionals. This will show us the general rates and the A PR for today, January 3rd, 2024. New year here, just after 11:00 AM Eastern. So all our general programs are live. neWs has not been so great this morning, so we might see a little bit of a rise here in the rates, but we will check it out here. We will compare a basic loan scenario so we can compare across the programs. And if you'd like a full breakdown of all the fees, all the itemized fees that go into the loan, estimate and create the a PR, please get with our team members. We have over 400 licensed loan officers in 23 states. So for the demo, we'll always set up a basic scenario to compare 400,000 loan amount. We'll set the LTV to 80% loan, 20% down payment, and we'll tell the computer to find the best rate options for conforming conventional. We'll compare that with FHA, which is usually the next option that most borrowers will look at. And then we'll go into our expanded guidelines, also known as Non qm, where we have over 5,000 additional loan options. Beyond the standard here, including the topic for today, the I 10 loans. We also have VA and USDA VAs only for eligible veterans and active service members. If you are, just let us know. We can quote it. No problem. And USDA is only for eligible properties. If you do happen to be looking in one of those USDA areas, just let us know. We'll start today with conforming conventional. We'll do a purchase 30 year fixed loan. Primary occupancy, same family home, one unit. State of Florida, county of Miami-Dade. And for all the demos, we use an estimated credit score of seven 60 and an estimated debt to income ratio here of 40%. So with these settings, let's check the conventional rates this morning. About too much changed yet we might see some action later Today, looks about the same as yesterday. 6% rate 2.375 discount points in cost, puts the final a PR at 6.275. So a good option here as we always talk about this, is much lower than it was just a couple months ago. So definitely recommend all of our customers out there shopping. Take advantage of the new lower rates. And if our customer doesn't qualify for a conventional option, we always want to compare an FHA option. So for the next demo, we'll select FHA, which does allow more leniency on credit issues as well as a much higher debt to income ratio. But for the demo here, we'll keep everything exactly the same so we can compare apples to apples and compare the a PR here. So pretty much the same as yesterday as well. 5.375. Rate 2.25 discount points in cost, puts a final a PR at 6.287, which is almost identical to conventional there. So in this case today, the two options are almost identical, but definitely recommend our customers at qualify Conventional. Still check out FHA. This a PR does include the upfront and yearly mortgage insurance that is required for FHA. So definitely some good changes that have happened to those programs and definitely some good options. Now, where we love to specialize is if our customer, unfortunately, doesn't qualify for either FHA or conventional, many other banks or lenders have to deny that customer. That's where we love to approve our customer. Using our 5,000 plus additional options here under expanded guidelines, also known as non qm. So we will select this option. Everything will stay the same. But now we have a new popup here where we can change the income type. So full doc is what we use for conventional and FHA. That's two years of tax returns, what most people are used to. So if our customer doesn't qualify with two years of taxes, we'll typically use a non QM option, taking advantage of one of these alternatives. We have asset related programs, business bank statement programs. The investor programs are just for investment properties. So we'll show that in a minute. Personal bank statement. 12 month is what we use for the demo that's the most popular. We also have RSU stated income, BOE 10 99 programs, p and l programs, no income, CDFI programs, all kinds of different options here. So we will select the 12 month bank statement for the demo and that's for our self-employed borrowers. Many times our self-employed borrowers when they submit tax returns may have various write-offs and may not qualify at all or just may need a little extra income to qualify for the house they really want. Either way, we'll solve the problem. No tax returns at all. Just the last 12 bank statements to D. Terminate debt to income ratio of 40% using just the cash on the bank statements. No tax returns at all. So most of our self-employed borrowers will qualify for much more income using this method and can therefore get the home they really want. So let's check out the bank statement options this morning. And again, it's about the same as it has been. These non QM rates don't move as, drastically as the conventional NFHA. So pretty much the same as it has been. 7.375, rate 2.125 discount points in cost. Put the funnel a PR at 7.767. Also, if you scroll down here, there's tons of different options. Some of these options at a little bit higher rates and costs may allow bankruptcies, foreclosures, other credit issues. Once we get into non qm, we can have all kinds of different variations. So please get with our team to find the best one here. Some may also have various variations here on the way they calculate income, so hundreds of different ways to do it. Please get with our team and they will find the best ones. Some of these may even allow I 10 borrowers, which is Jose's topic for today. And before we get into Jose's demo, we always wanna do live pricing for investors for investment properties. So we'll set up a 80 LTV, 20% down payment. 400,000 loan amount just like before. And this time we'll ask the computer to find the lowest rate options for our conforming conventional investment options, and we'll compare that to our expanded guidelines, also known as non QB member government programs. F-H-A-V-A-U-S-D-A do not work for investments. So we'll stick with these two here. For the first option, we'll select conforming conventional. Everything will stay the same as all our other demos. All we've changed here is the occupancy to an investment property. So let's check the best options for investments. And again, it's about same as yesterday, 6.8 7 5 8, 3 0.375 discount points in cost. That's the final, A PR 7.277 here. So good option for our investors looking to do conventional two year tax return. However, I recommend all of our investors and all of our loan officers out there. Talking to investors, recommend them to check out a non QM program to compare. Most of our investors end up going with non qm. So for the final demo, we'll set up the same scenario, 80% loan to value, 20% down payment, and we'll find the lowest rate options for our non QM investment property options. So first, for any non qm, we need to select the income. The most popular income type that we use and our most popular loan by far is the investor DSCR option because it doesn't require any income or employment or documentation on that from our borrower. We simply use the estimated rental income from the appraisal to determine A-D-S-C-R. Value stands for debt service coverage ratio. If the estimated rents on the appraisal can cover the P-I-T-I-A, the expenses of the home, AKA, the property will cash flow as a ratio of 1.0 or higher. We even have options for ratios under 1.0. And for the demo we'll put 1.5 as the highest value the computer accepts so that we can see all the programs. And finally, prepayment penalty is standard on these programs. We always choose three years for the demo. There are options for zero prepay that will cost more and limit what shows up, but we cancel it if we wish. And there are options for five years, which does save our customers some money, but does limit the programs since three years is most common. That's what we select for the demo, so we can see the most common options pop up here. And at the top of the list here, 7% rate, absolutely amazing. 3.5 discount points and costs for our final IPR 7.52648 DSCR option which is within point two, something of the conventional rates we just looked at, right? So I'd say 100% of investors when comparing A-D-S-C-R no DOC loan to a full doc conventional loan for 0.2 in difference in costs. A hundred percent. We'll choose A-D-S-C-R loan for the flexibility, the ease, and the less documentation. So definitely recommend all of our investors. Check these out. And if we scroll down, there's tons of options here. Some of these at higher rates and costs may allow bankruptcies, foreclosures, other credit issues. Some may allow us to use short-term rental income to calculate, and some of these may allow different borrower types, which is our topic for today, such as I 10 borrowers. So let me go ahead and switch my screen and we'll get right into the topic for today. And here is the slide. So I 10 loans are definitely a unique subset and only exist under non qm. So every time you see me select expanded guidelines, there are options typically within those expanded guidelines to do a loan for an I 10 borrower under certain programs. So we can't do that on a live pricer, just like most of our deep dives. These are very specific niche products within You know our realm there. Obviously the live pricer can pull up the general info, but Jose is gonna show us the actual programs that work for our borrowers. Who are I 10 borrowers? Remember our I 10 borrowers are not US citizens, right? They usually don't have status to work in the us And a few other restrictions. I'll let Jose go into the very specifics there. But these are basically a subset of what you see me do every morning with the non qm. You can basically add this. Add a feature to many of the programs, not all but many. So Jose will show us the ones that we can add it to and that are eligible for our borrowers. Obviously, when we add that itin, it does sometimes limit the LTV and other things. That's also why Jose needs to explain this in depth. So if you're ready there, Jose, with your examples, let's go ahead and check out. Good morning everybody. How's everybody doing this morning? Hope you are staying warm, even in sunny South Florida. It is a little chilly today. So the I 10 borrower is normally confused with the foreign national borrower. Because as Nick was stating, they both do not have legal status in the United States. They don't have a permanent residency, they don't have non-permanent resident either. They don't, don't have a work permit that they can be using. If they were, then they could and if they had US-based credit. They could do on their regular non-permanent resident alien program, but the IT 10 borrower differentiates from the four national borrower in that the IT 10 borrower is working in the United States deriving their income from the United States. However, what you do have to be aware of the IT 10 borrower. is that they can never be a full doc with W Twos. The reason they cannot be full doc with W Twos is because then they would have to have a social security number to which their deductions could be put forth. And so in their case, they do not have this document. So all that they could ever be is different forms of, self-employed, right? So that's what we're dealing with here. We're basically dealing with self-employed borrowers. Now the, the other thing that you do have to be aware of with the IT borrowers and, and this you do have to look very deeply into your guidelines, is the documentation regarding if they need so, government issued ID from the United States. That is going to be the key. Some programs do not require US based IDs. Other programs do require US-based IDs. So that is something for you to be aware of. When they don't require the US-based IDs, then what they will probably require is some type of ID from their country of origin, right? So that's the key component there. Don't have your deal fall by the wayside. And then all of a sudden, you know, because all of a sudden when you think that you're scot-free they hit you with some kind of a condition that is going to require you to produce a document that unfortunately will not be possible. So let me just make one last tweak here to one of my options here that I am setting up, which is going to be the favorite one. And I will be able to share my, oh, all right, we are set. So let me share my examples with you today. We have purchase examples. First one is the maximum LTV for the I 10 program is 85%. Lemme make this a little bigger for you all. All right, so 85% I 10 full dock, right? So the full dock option is maximum 85% LTV, and here we have a very good option. 10.25 is our lowest cost option. 9.625 is our lowest rate option for 85% LTVI 10 borrower. And also remember the IT 10 borrower has to have US space credit. hEre we have at the lower or more standard LTV of 80%. I wanted to show you the difference in the rate. So it does get almost 1.5% better. We're at 8.999. For our lowest cost option and 8.499 for our lowest rate option, and that is at 80% and that is full dock. So now we have a bank statement option. Yes. This is pretty cool. Since I did mention your item, borrowers are usually going to be some type of full doc, so I mean, I, I. The full dock option comes up, but I don't know how we would actually be able to qualify that borrower full dock if they do not have W twos. Keep that in mind. So here we have our bank statement, option 8.999 is our lowest cost option. And 8.625 is our lowest rate option, and 80% is the maximum LTV for this primary bank statement option. So now our p and l profit and loss purchase rate does go up a little bit over the bank statement option. So we're at 11.249 is our lowest cost option, and you can buy that down to 10.124 for our primary. P and L purchase. And now we have a primary 10 99 purchase. That was last night's topic. Tonight's topic is I 10. So here we are looking at 11.124 is our lowest cost option, and you can buy that down all the way to 9.249% for I 10 10 99 Primary. So now we have an investment property purchase using bank statements for our item borrower. 75% is the max LTV there, but we're looking at 10.999. As our lowest cost option and 9.249 as our lowest rate option. Again, self-employed. Investment bank statement purchase, 75% LTV, and I got duplicate. This should be p and l and it is 10.999 again and 9.249. Let's go with our DSER purchase. This is last but not least. We have DSER option four I 10, which is actually pretty amazing, and we're at 8.75 with a three year prepay. And lowest cost option, and you can buy that down to 7.999. So the secondary market really loving the DSER product as, as you can see here. The rate does improve when we use our DSER product for our ITIN versus our bank statement 10 99 or p and l option. So. Very good options there for investment properties for I 10 borrowers. The I 10 is also one of the hottest segments out there. DSER and I 10 are both in high demand amongst secondary markets, which is why we're seeing so many options open up for this borrower type. Let's see. It looks like we have a question here, which I think was kind of answered. But the question is, what ways can the borrower use the property that they're purchasing? And could they purchase more than one? Hmm. I'm not sure how to answer that question. Well, I think just what kind of occupancies, I guess. But we kind of you know, went, went through that. Well, yeah, I mean, primary second home or investment property basically is what we're talking about. And as well as long-term rental or short-term rental. I mean, there are no restrictions on the IT borrower other than. The documentation requirements that they have to have and the credit requirements, whatever are the normal requirements. But there are no restrictions over primary, second home or investment, especially as we just showed the DSER option. Alright, great. Well, it looks like there's no other question, so we can wrap it up. Remember, we do this 11:00 AM Eastern every weekday where we go through the live rates and then do a deep dive into a different topic. So we'll have a new topic tomorrow. We appreciate everybody tuning in. Thank you, Nick. Thank you, Jose. We'll see you all tomorrow. 11:00 AM Eastern for the next episode of Daily Rates, live with the Mortgage Calculator. Have a great day everyone. Thanks everybody. Have a great day, everybody.