1/16/24 – Have your buyers buy with cash, the refinance!

We now have a cash buyer program where a buyer can purchase a property with cash and refinance after they close. Yes, there are fees, and the buyer will be paying a premium interest rate, but say you have a buyer putting 5% down and is pre-approved with us. We will show proof of funds and close all cash, then close all cash but put a loan on the property for the buyer. The buyer will put down the down payment, and there will be no contingencies! No loan contingency, no appraisal, nothing needed on the loan side!

The fees on this loan are 1.5 Points plus 9.99%. We should be able to refinance most of these properties in three weeks or less. The difference in payment is only about $45.00 per day on an $800,000.00 purchase price, so that should not be the deterrent! The big deterrent will be the 1.5 points, but they will get the house! YAY!

Please let us know if you have questions on this.

Condo / Townhome issues we know of now. Properties can be financed with 10% down and are considered NON-WARRANTABLE:

1. Scenic Hills – Insurance
2. Mariposa – Litigation semi-cleared! Insurance a mess!
3. Bouquet Canyon Village – Insurance
4. Madison – Litigation – I heard an FHA loan closed in there! I am trying to find out if it is an underwriter error, or will it be okay to do FHA loans there?
5. Cornerstone – Insurance
6. Canyon Oaks – Insurance
7. Brookside Walk – Insurance – NEW as of last week
8. Shadow Ridge – Oak Park – Insurance
9. Sierra Glen Condos – Insurance
10. American Beauty Condos – The brown ones – Insurance – 50 Mil in coverage for 748 units is not nearly enough!

As of today, the list of condos needing a minimum 25% down payment is considered non-warrantable. Please note – these are likely not financeable if the insurance coverage is too low:

1. Bridgewater, Emeryville - Insurance issues
2. American Beauty Village, Santa Clarita - West has insurance issues – East will get renewed on February 28, 2024, and supposedly will have enough Insurance, so that is good news!
3. Cabrini Villas, Burbank - Maybe able to do 10% down, case by case! Please provide a specific address & LTV & occupancy.
4. Morada, San Diego - Insurance issues.
5. Parkwoods, Oakland - Insurance issues.
6. The Summit, San Diego - Insurance issues
7. The Met at Warner Center, Woodland Hills - Due to the project size, we can lend with 10% down on the project side that is on Burbank and Owensmouth. They are no longer lending for the project section on Canoga.
8. West Creek and West Hill Valencia, CA - Insurance

Please let me know if you hear anything new on condos or townhouses.

Rates are higher today after a good week last week. Let’s hope this is the post-MLK blues, and we can get on the right track again tomorrow.

• 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) are in the high 5’s and low 6’s
• Conventional Loans up to $765,550.00 are in the low to mid 6’s
• High Balance Loans $765,550.00-$ 1,148,325.00 are in the mid to high 6’s
• Jumbo loans above $1,148,325 are in 6’s
• Bank statement loans - They are available with 10% down again! 8’s and 9’s depending on down and credit score.
• 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 $740,000.00.
• Private Money lenders - hard Money Loans – 35% down!
• No Ratio Loans 30% down
• Debt Service Coverage loans with as little as 25% down
• Bridge Loans - typically 7.500% with limited fees – and they get you where you need to go!
• 0 down California Dream for all Equity Share – Postponed until February 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! Above are LA County Loan Limits.

I am available and in the office all week. 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. Please 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!