10/31/24 – Bridge for New Construction

I heard that about 20% of the listings on the MLS in Santa Clarita are new construction, and builders are very controlling and generally give a credit if a buyer uses the in-house lender. Sometimes, the rates are inflated to cover the cost of the credit, and other times, the builder’s lender needs the loan programs or the knowledge to help your buyer the way they need to be helped.

Most builders are requesting that a buyer be non-contingent, and I have had quite a few people tell me they had to sell their house 3-6 months before closing on new construction. I have had others call me, and I get them a pre-approval letter for a Bridge Loan, but the builder’s lenders don’t know how to handle it. In most cases, our clients can get approved for the Bridge Loan and sell their house in their own timeframes using the Bridge Loan as their safety net in case they don’t sell it. I have a client who is building new construction that closes in March, and the builder wants them to be non-contingent by December 1. They listed their house about two weeks ago, and it has yet to sell. They were freaked out that they would lose their new construction home, and I calmed their fears and promised them we could do a Bridge Loan if they didn’t sell. After review, I wrote them a pre-approval letter, and they decided to take their home off the market until January, as the buyer and the agent both agreed they would sell quickly at that point.

So, let’s look at the math. These buyers were going to sell now and got no offers, but they think they will get more in January after the election and after the holidays. They will only have to move once, and they can do a short rentback if necessary. They get to deal with my team and me, a huge bonus for everyone! LOL! Avoiding a double move is worth the $5000-$10,000 a buyer would get with an inflated rate and substandard service.

That’s about it for today!

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!

Forty-five days ago, interest rates were at their best levels in almost two years. Rates got slightly better today, but they are nowhere near where we were a month and a half ago! We should get a little direction the day after the election.   

• 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 5’s and 6’s.
• Conventional Loans up to $800,000.00 are in the 6’s
• High Balance Loans $766,550.01 – $ 1,149,825.00 are in the 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 6’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 – Cornerstone got their shit together, and they are warrantable! YAY!  

Bad News on Condos – Village Walk  – Insurance issues - Insufficient insurance.

All other naughty condos have been moved to MikeMeena.com. I will post updates here, but all the information on the naughty list is on my website. Just go there and click about, 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 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. 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!