10/24/23 – Profit and Loss Statement Loan

I am sharing a program we have been doing some Business on recently. With the higher interest rates, we see people needing help qualifying based on their taxes or business bank statements so that we can use a Profit and Loss Statement Loan instead. This loan does not require W-2s, Tax Returns, or Paystubs, and here are the guidelines below for Self-employed buyers:

• A 2-Year Business License – Only if applicable
• CPA, CTEC, EA, or PTIN prepared a Profit and Loss Statement.
• A letter from a Licensed Tax Preparer stating that the owner owns 100% of the Business
• You can be a 1099 contractor, schedule C Sole Proprietor, C or S Corp, etc.
• Max LTV 80%.
• Min Fico 620 (35% down required with a 620 score)
• Business Bank Statements are NOT required
• 100% gift funds are allowed
• Primary, 2nd Home, and Investment Properties are all eligible
• Temporary Buydowns available  – 1/0 – 2/1 – 3/2/1
• Interest Only Available – rates are higher on these
• Foreign Nationals Allowed
• You do not have to source large deposits

As you can see, this is as close to a pre-2006 Loan as you can find and serves its purpose. We have seen a nice uptick in this loan over the past few months, so I wanted to share it. Pricing starts in the high 8’s, so it prices pretty well. The term is fixed for 7 years.

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 – Insurance
9. Brookside Walk – Insurance – NEW as of last week

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

Interest rates have dropped for the second day in a row! YAY! In the past 55 days, we have seen rates go up 1.5% from already high-interest rates. When will the bleeding stop? I think we are there, but who knows for sure? Hang in there and stay positive because this is the best buying opportunity our buyers have seen in a while, as prices are starting to come down a bit!

• 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 and low 7’s
• Conventional Loans up to $726,200.00 are in the high 7’s and low 8’s.
• High Balance Loans $726,201.00-$ 1,089,300.00 are in the 8’s
• Jumbo loans above $1,089,300 are in the 7’s and 8’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 6’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 - 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!