10/17/2023 – Moving to a Different Area

A reminder that Oktoberfest is just around the corner, happening tomorrow! We’re all set to indulge in various cuisines, including Mexican, Italian, and Greek, accompanied by delightful spirits, delectable desserts, and the lively tunes of a live band. Join us for an evening of fun from 5:30 to 8:30 on Wednesday, October 18th.

On a different note, I’ve been dealing with several clients relocating to other areas. Some of these deals have presented unique challenges. Before listing their property for the move, it’s crucial to have them contact us so that we can ensure their eligibility for the new property. We’ve encountered several stumbling blocks, and getting ahead of any issues is important before your seller lists.

For instance, consider self-employed individuals who have a local customer base. They must figure out how to continue their work from a different area. Take, for example, a dentist with a practice in Los Angeles who’s relocating to San Jose. Questions arise about whether they’ll need other dentists to handle their practice or if they are a one-person show. Employees of local companies who wish to move also face the challenge of determining if their jobs can be transitioned into a telecommuting role.

Of course, not all jobs can be telecommuted. Some professions, like construction work, security, or restaurant service, don’t translate to remote work. In contrast, roles in IT, sales, and other arenas offer more flexibility.

We’ve encountered scenarios where clients plan to split their time between different locations, but the underwriting process can be pretty rigorous in assessing the feasibility of such arrangements. Others intend to buy property while job-hunting in their new place. In such cases, buying a property as a second home or an investment before they move may be a good solution.

It’s worth noting that the employment landscape can differ significantly from state to state. For instance, California primarily consists of W-2 employees, whereas other states may hire individuals as independent contractors, which can impact their income for underwriting purposes. Say I am a licensed Electrician making $80.00 per hour working full time in California, and I move to Nebraska, and they pay me $70.00 per hour on a 1099. What is my income for underwriting purposes? If you said, $0 then you are correct!

In light of all these complexities, prospective buyers must consult with a knowledgeable lender before making any decisions. Online sources may provide information but might not ask the right questions or offer the tailored guidance needed. Unfortunately, issues like these arise regularly, and timely communication with the lender can often prevent last-minute hiccups.

Condo / Townhome issues we know of now:

1. American Beauty Village – Insurance
2. Scenic Hills – Insurance
3. Mariposa – Litigation – Agreed upon, but not yet recorded
4. Bouquet Canyon Village – Insurance
5. Madison – Litigation
6. West Creek / West Hills – Insurance
7. Cornerstone – Insurance
8. Canyon Oaks – This is new!!!
9. Brookside Walk – Insurance – NEW!!!

Please let me know if you hear something new on Condos or Townhouses. We will see premiums increasing, likely increasing the HOA Fees soon!

Stop buying stuff! Retail sales killed the market today! Rates are at their highest levels yet! Oh, and they will come down soon… I hope!

• 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 6’s.
• Conventional Loans up to $726,200.00 are in the mid 7’s.
• High Balance Loans $726,201.00-$ 1,089,300.00 are in 7’s
• Jumbo loans above $1,089,300 are in the 7’s
• Bank statement loans - They are available with 10% down again! 8’s + depending on down and credit score.
• No income qualifier – 40% down with reserves! In the 6’s!
• 0 down loans are in the mid to 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 - are typically 8.49% with limited fees – But they get you where you need to go!
• 0 down California Dream for all Equity Share – Postponed until October???
• 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 around all week 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 me at 661-714-6258 or email me at Mike@AugustaFinancial.com. Have a great day and a better tomorrow! Please call me when you have a client that needs to borrow!