10/3/24 – When your client says “I’m gonna wait til next summer!” I am going to start with a request! I NEED 8 MORE PEOPLE TO SIGN UP FOR THE BLOOD DRIVE BY TUESDAY! See link below: Most of us agree that buying now is better than waiting until next year, but how do the numbers look if we can save up a more significant down payment and buy next year or in 2026? Here is a way to fight that with numbers. John and Suzie, want to buy a house with 3% down, but they think they can save a 10% down payment and purchase next summer when the interest rates are lower. They know prices will increase, but they hope inventory increases for a better selection. They don’t seem serious about buying now, but you know this is the best time to buy because there is a good chance that the market will go a bit wild after the election, the holidays, and when interest rates start to go down next year! They get excited about a 3-bedroom house for a mere $819,000, and you know you can get it for them today at $799,000, which is already 2.5% lower than the last comp! You push them to me, your lender, and tell them they must review the numbers with Mike, at least! We sit down, and I put these numbers together: $799,000 Price – 3% down -Principal and Interest = $4709 + Property Taxes $832.00 + Insurance $250.00+ PMI = $226.00 = $6017 If you have 10% down, then the payment will be as follows: $799,000 Price – 10% down -Principal and Interest = $4369 + Property Taxes $832.00 + Insurance $250.00+ PMI = $149.00 = $5600 If you wait until next summer months and rates are better by .75%, and the same house comes up for $825,000, you will have the following payments with 10% down: $825,000 Price – 10% down -Principal and Interest = $4158 + Property Taxes $859 + Insurance $250+ PMI = $154 = $5421 The odds are that your buyers don’t save 10% down, so here is their payment if they only put 3% down: $825,000 Price – 10% down -Principal and Interest = $4481 + Property Taxes $859 + Insurance $250+ PMI = $234 = $5824 If you buy now and refinance next summer, your value is $825,000, and if you refinance at that time, you will have the following payment: Principal and Interest = $4323 + Property Taxes $832.00 + Insurance $250+ PMI = $160 = $5565 and you still have $58,530 in your pocket because you only put 3% down instead of 10%. We would also go over where they are saving on taxes, what the appreciation means long-term, and what will happen when interest rates go lower. I am available 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 me, please text (661-714-6258) or email me at Mike@AugustaFinancial.com. But wait, there’s more! Interest rates are losing a little ground again today. We have been seeing good economic news lately, and I don’t like it! 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 on Condos – I will move this section to my website next week. It’s just getting too long. Any changes will still be posted here! Bad news – Condo Update? – Straight from Fannies list – 57 Projects Condo / Townhome – issues we know of now Properties can be financed with 10% down and are considered NON-WARRANTABLE: Acacia Village Homeowners Association – 147 W Acacia Ave, Glendale, CA 91204 – This project needs critical repairs and may have material deficiencies and significant deferred maintenance. Aldea Community Association – 11318 Paseo El Sol, Porter Ranch, CA 91326 – This project’s HOA or co-op corporation (or project sponsor or developer) is a named party to pending litigation that relates to the safety, structural soundness, habitability, or functional use of the project. American Beauty Condos - The brown ones - Insurance: 50 Million 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 West: On Fannie’s List Per Fannie, this project needs critical repairs and may have material deficiencies and significantly deferred main entrance condition. his project’s master insurance policy deductible exceeds the allowable limit. Bella Ventana -A $50,000 deductible per unit is naughty. Bouquet Canyon Village – A $50K deductible per unit is naughty! Briarcliff North Townhomes –7435 Shadyglade Ave #2, North Hollywood. This project’s master insurance policy deductible exceeds the allowable limit. Briarcrest – 12720 Burbank Blvd Valley Village – Insurance and repairs Bridgewater, Emeryville - On Fannie’s List! Insufficient Insurance Brookside Walk – Insufficient Insurance Cabrini Villas, Burbank - On Fannie’s List! Insufficient Insurance Calla and Rowan – 27513 Illumination – Fannie Mae Approval expired – New Construction. See Blog on 5/7/2024 Cameo Woods HOA - Per the litigation disclosure, the association is being sued by a homeowner for water heater damage and discrimination, and the damage is still ongoing. e received confirmation that the HOA’s insurance agency is not covering the lawsuit, and the claim was denied due to the nature of the complaint. 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 Cimmaron Oaks – Castaic – Insurance is too low! Cornerstone – Insurance -On Fannie’s List! Creekside – Insufficient Insurance District Community Association – Northridge – Fannie Denied – Insufficient Insurance Encino Oaks – 5460 White Oak Ave – On Fannie’s List! The Greens At Cascades Hoa 16431 W Nicklaus Dr, Sylmar CA 91342 -This project’s master insurance policy coverage does not meet the requirements. Heather Ridge – Deductible too high, not enough insurance – Fannie Naughty List! Heathercliff Manor Hoa – 15946 Vanowen Street, Van Nuys, CA 91406 – This project needs critical repairs and may have material deficiencies and significant deferred maintenance. Independence Hall – 8801 Independence Ave, Canoga Park, CA 91304 – This project needs critical repairs and may have material deficiencies and significant deferred maintenance. This project has unfunded repairs costing more than $10,000 per unit that should be undertaken within the next 12 months (does not include repairs made by the unit owner or repairs funded through a special assessment). Liberty Canyon HOA – 27409 Country Glen Road, Agoura Hills, CA- On Fannie’s List! Lindley Park Plaza 5500 Lindley Ave Unit 111, Encino, CA 91316 – This project needs critical repairs and may have material deficiencies and significant deferred maintenance. The units in this project are subject to a current or planned special assessment intended to cover the cost of critical repairs, and all necessary repairs have not been fully completed. Madison at Towne Center – Litigation – We can do with 5% down, but others can’t! Magnolia Manor – 12416 Magnolia – Lots of issues from Insurance to repairs. Mariposa: On Fannies List. Per Fannie Mae – This project’s master insurance policy coverage does not meet the requirements. Market Street Community – Corona – No Wildfire coverage Mesa Vista North Townhomes – San Juan Capistrano – 50K deductible per unit is naughty! Oak Park Calabasas – 4752 Park Granada, Calabasas, CA 91302- This project’s master insurance policy deductible exceeds the allowable limit. Orchid at Valencia – 27033 Open Sky Place – Fannie Mae Approval expired See Blog on 5/7/2024 Penn Court Homeowners Association, Inc. – 4201 Pennsylvania Ave, La Crescenta, CA 91214 This project’s HOA or co-op corporation (or project sponsor or developer) is a named party to pending litigation related to the project’s safety, structural soundness, habitability, or functional use. Princessa Estates – insufficient reserves Royal Vista Court – 10290 Tujunga Cyn Blvd – This project’s HOA receives >10% of its budgeted income from the active ownership and operation of non-incidental amenities or services made available to unit owners and the general public. Sand Hill Condominiums Homeowners Association – 8221 Langdon Ave Van Nuys – This project’s master insurance policy coverage does not meet the requirements in the Selling Guide. Scenic Hills – Insurance – On Fannie’s list! This project’s master insurance policy coverage does not meet the requirements in Selling Gu de 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 – The number of units in this project owned by one or more single entities exceeds the maximum allowed. Tara Village Homeowners Association – 18350 Hatteras St, Tarzana, CA 91356 – This project’s master insurance policy coverage does not meet the requirements. The District Community Association – 19533 Cardigan Dr, Northridge – On Fannie’s List! Tolucan Villas – 10740 Moorpark St, North Hollywood, CA 91602 – The number of units in this project owned by one or more single entities exceeds the maximum allowed. Treana - Stevenson Ranch: On Fannie’s List Per Fannie, this project needs critical repairs and may have material deficiencies and significant deferred maintenance. Tyler Villas – Sylmar – Coverage is good but non-warrantable for delinquencies Valle Di Oro is 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. Villa Valencia Homeowners Association – 6226 Nite Avenue, Woodland Hills, CA 91367 – This project’s HOA or co-op corporation (or project sponsor or developer) is a named party to pending litigation that does not meet the “minor matter” definition. Village Park Condo – It’s over the max deductible with that 50k per 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 –This project’s master insurance policy coverage does not meet the requirements. Warner West Condominium Association, Inc. – 22100 Burbank Blvd, Woodland Hills CA 91367 This project’s master insurance policy does not comply with Selling Guide. 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! Hoyt Village LLC – 26 units, and 14 are owned by one entity! –13801 Hoyt St, Pacoima CA 91331- The number of units in this project owned by one or more single entities exceeds the maximum allowed under the Selling Guide. More than 15% of the units in this project are 60 days or more past due on their HOA fees/common expense assessments. The number of units in this project owned by one or more single entities exceeds the maximum allowed. 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.
