06/05/2024 – Our Market – Why Buy Now! I hope you had a wonderful weekend, and happy Wednesday to you wherever you may be. I have to laugh at this market, as I hear from agents all the time that their houses are sitting, sellers are getting nervous, and they need to sell a property. I have a flip in Burbank that has been on the market for almost three weeks. We had no offers for the first two weeks, and now we have multiples above asking. So what does that mean? It means that people need to process their decisions in this market with high prices and interest rates. It is no longer a show a property, put in an offer and accept what you are getting because you are lucky to get a house market! We all need to be more patient, review the pros and cons of every aspect of the house, and see if something better might come up! We must inform our clients that selling a home could take weeks or more. We are seeing more cancellations now than I can remember since the mortgage meltdown. Why do you think that is the case? Buyers feel like they are getting no concessions; they are paying top dollar for a home they can afford, but it is not what they want. They know prices will continue to rise, but many think they can time it perfectly and get a low rate before the frenzy when rates drop! This is where I think we need to do a better job of explaining! Will there be a sudden influx of inventory when rates drop? No! Rates have had a great week, and we have seen them move maybe .250%! How many good weeks do we need before rates get in the 5’s? Well, four more like this week, and that’s a start. Does that start a frenzy? Does that put more inventory on the market? I know it gets people closer to their price range. So what is the difference between 6.75% and 5.75% in real-life payments? It’s about $65.00 for every 100K you borrow! If I buy a house for $1Mil and put 20% down today then my payment will be as follows: $5317 P&I / $1041 Taxes / 400 insurance = $6758 What is my payment if I buy for $1,050,000.00 when rates go down 1%? $5030 P&I / $1094 Taxes / 400 insurance = $6524. Oh, and I had to pay an additional 10K down! If I buy now and refinance when rates are 1% lower, then my payments at that time will be: $4791.265 P&I / $1041 Taxes / 400 insurance = $6232.26 Which way would you go? Are you talking about this with your clients? Is your lender showing them this? I hope this is helpful! I am available the rest of the week and all weekend if you need anything. Let me know if you have any questions or if someone is interested in buying a property! My cell is 661-714-6258, and my office line is 661-260-2970 ext. 2222. My direct line is 661-291-2222. When you text, text (661-714-6258) or email me at Mike@AugustaFinancial.com. But wait, there’s more! Interest rates are on a five-day winning streak, and things are looking better. We hope this trend will continue and get these rates back in the 3’s! LOL! 12-day escrows if your buyer is pre-approved - Conventional / FHA / Jumbo / Bridge We do loans in all states, so call me with anything you need. Government Loans (FHA / VA/ USDA) are in the high 5’s and low 6’s Conventional Loans up to $766,550.00 are in the high 6’s and low 7’s High Balance Loans $766,550.01 – $ 1,149,825.00 are in 7’s Jumbo loans above $1,149,625 are in 7’s Bank statement loans - They are available with 10% down again! 7’s to 9’s depending on down and credit score. Profit and Loss Statement loans- You don’t need bank statements, just a profit and loss statement! No income qualifier – 40% down with reserves! In the 8’s! 0 down loans are in the high 7’s – 660 credit score min right now, up to $793,000.00. Private Money lenders - Hard Money Loans – 35% down! No Ratio Loans 30% down DSCR – Debt Service Coverage loans with as little as 15% down Bridge Loans - typically 7.99% with limited fees – and they get you where you need to go! 0 down California Dream for all Equity Share – Registration April 3 to April 29, 2024 3/2/1 Buydowns 2/1 Buydowns and 1/0 Buydowns are available at great start rates! Interest rates are subject to change without notice! The above are LA County Loan Limits. Condo Update? Nothing new and exciting! Condo / Townhome – issues we know of now. Properties can be financed with 10% down and are considered NON-WARRANTABLE: American Beauty Condos – The brown ones – Insurance – 50 Mil in coverage for 748 units is not nearly enough! American Beauty Gardens: 19% delinquency on special assessments due. 19% are 60 days or more late! We can do with 5% down, but others can’t! American Beauty Village: On Fannie’s List. Per Fannie, this project needs critical repairs and may have conditions such as material deficiencies and significant deferred maintenance. This project’s master insurance policy deductible exceeds the allowable limit Bouquet Canyon Village is on Fannie’s list! Per Fannie – This project’s master insurance policy coverage does not meet the requirements Bridgewater, Emeryville - On Fannie’s list! Brookside Walk – Insurance – Cabrini Villas, Burbank - On Fannie’s list! Calla and Rowan – 27513 Illumination – Fannie Mae Approval expired – New Construction. See Blog on 5/7/2024 Canyon Village – Reserves and 10% of the dues not going to reserves! Canyon Oaks – Insurance On Fannie’s list! Casa Marabella – 13951 Sherman Way, Van Nuys -On Fannie’s list! Cassia and Jasmine – 26949 Winding Trail Court – Fannie Mae Approval Expired. See Blog on 5/7/2024 Cornerstone – Insurance -On Fannie’s list! Creekside – ??? We don’t know Encino Oaks – 5460 White Oak Ave – On Fannie’s list! Lantana at Valencia – 27034 Hummingbird Lane – Fannie Mae Approval – expired. See Blog on 5/7/2024 Liberty Canyon HOA – 27409 Country Glen Road, Agoura Hills, CA- On Fannie’s list! Madison at Towne Center – Litigation – We can do with 5% down, but others can’t! Mariposa: On Fannies List. Per Fannie Mae – This project’s master insurance policy coverage does not meet the requirements. Orchid at Valencia – 27033 Open Sky Place – Fannie Mae Approval Expired. See Blog on 5/7/2024 Penn Court HOA – 4201 Pennsylvania Ave La Crescenta On Fannie’s list! Princessa Estates – has $8200 in Reserves, and they are voting on an assessment in May! Rainbow Sierra Terrace – On Fannie’s Naughty List – This project’s master insurance policy is not written to Replacement Cost Value. See Selling Guide Sec. B7-3-03, Master Property Insurance Requirements for Project Developments. Scenic Hills – Insurance – On Fannie’s list! This project’s master insurance policy coverage does not meet the requirements in Selling Guide Sec. B7-3-03, Master Property Insurance Requirements for Project Developments. Shadow Ridge – Oak Park – Insurance -On Fannie’s list! Sherman Way Condos – 17900 Sherman Way Reseda – On Fannie’s list! The District Community Association – 19533 Cardigan Dr, Northridge – On Fannie’s list! Treana - Stevenson Ranch: On Fannie’s list! Per Fannie, this project needs critical repairs and may have conditions such as material deficiencies and significant deferred maintenance. Valle Di Oro- On Fannie’s list! Per Fannie Mae, this project contains timeshare, fractional, segmented, or split ownership units or other arrangements (such as mandatory rental pooling, shared interest apartments, or community apartments) restricting the unit owner’s ability to occupy the unit. Vista Del Canon – Insurance is too low, UGH! Walnut Gardens II – 7320 Lennox Ave Van Nuys CA – On Fannie’s list! Warner Center Condos – 5515 Canoga Ave, Woodland Hills, CA – On Fannie’s list! West Creek Condos and Townhomes: On Fannie’s List. Per Fannie, this project’s master insurance policy coverage does not meet the requirements in the Selling Guide! Please let me know if you hear anything new on condos or townhouses. I am still available all week if you need anything. Let me know if you have any questions or if someone is interested in buying a property! My cell is 661-714-6258, and my office line is 661-260-2970 ext. 2222. My direct line is 661-291-2222. When you text, text (661-714-6258) or email me at Mike@AugustaFinancial.com. Have a great day and an even better tomorrow! Please call me when you have a client who needs to borrow! Mike Meena President | Loan Officer Click to Call or Text: (661) 714-6258 This entry has 0 replies Comments are closed.
