10-15-24 – Co-Signors We often get clients who can’t qualify for a mortgage for some reason, and the question is asked, “Can they get a co-signor?” The answer is yes sometimes, and then the question is, will the co-signor take them over the top, and what is the effect on a co-signor? A co-signor only works if there is an income situation and not a credit situation? A co-signor can often help if you need income to take you over the top. If Mom is the co-signor but has a mortgage with your stepdad, and he is not willing to sign with her, then we will have to hit her for 100% of the house, property taxes, insurance, and any other bills she may have. The goal is to keep our buyers under the maximum debt-to-income ratios with our buyers and co-signors, so co-signors can be tricky. If you co-sign for someone, you will be hit for that payment on your debt-to-income ratios if you get another mortgage for the next 12 months. After 12 months, the co-signor can use canceled checks or bank statements showing that the primary buyer made the payments, and they did not, and they were not on the account. Your credit can be affected if there are ever late payments on the mortgage you co-signed for. It can also look good if there are perfect payments and the co-signor could have had better credit. VA Loans are a little funny when it comes to co-signors. The Veteran needs to qualify for half of the loan payment and would be required to put 12.5% down on the loan. Jumbo investors usually have limits to how a co-signor can help, and many of them will not allow any help from a co-signor, but when you are buying at that price point, there are usually many other loan options. I am 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 me, please text (661-714-6258) or email me at Mike@AugustaFinancial.com. But wait, there’s more! Interest rates are still having a rough month, but the bleeding has stopped for a bit. Interest rates are a tad better today than yesterday, but nothing crazy! 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 4’s to low 5’s Conventional Loans up to $766,550.00 are in the high 5’s to low 6’s High Balance Loans $766,550.01 – $ 1,149,825.00 are in the low to mid 6’s Jumbo loans above $1,149,625 are in the mid to high 6’s Bank statement loans - They are available with 10% down again, and larger down payments are in the 5’s. Profit and Loss Statement loans – 20% down – You don’t need bank statements, just a profit and loss statement! No income qualifier – 40% down with r serves In the 8’s! 0 down loans are in the high 6’s – 620 credit score min right now, up to $1,191,000.00. 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! 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. Good News / Bad News on Condos - Mike's naughty list! This section has been moved to MikeMeena.com. I will post updates here, but all the information on the naughty list is now on my website. Just go there and click about it, and you will find our most updated list. 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. y direct line is 661-291-2222 When you text me, 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! Mike Meena President | Loan Officer Click to Call or Text: (661) 714-6258 This entry has 0 replies Comments are closed.